Ian Johnson: China Extends Buy-Local Push

From the Wall Street Journal:

Amid a series of trade disputes simmering in the background, China is pushing ahead with efforts to ensure that its gargantuan stimulus package benefits domestic companies.

A recent directive issued by several central government agencies, including the powerful National Development and Reform Commission, appears to require that Chinese companies should receive contracts for government stimulus projects unless Chinese companies cannot deliver certain technical goods at a reasonable price or time frame. The notice, which was issued on May 26 but only posted on the commission’s website this month, is part of broader buy-local push in recent months by authorities, who have quietly been indicating that most of the two-year 4 trillion yuan (US$588 billion) in stimulus spending will be aimed at Chinese companies.

“Apart from engineering goods or service that cannot be obtained under reasonable business conditions inside China, domestic products should be purchased for the government investment program,” according to the official notice.

Read the official notice here (in Chinese).

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