China has introduced an explicit “Buy Chinese” policy as part of its economic stimulus programme in a move that will amplify tensions with trade partners and increase the likelihood of protectionism around the world.
In an edict released jointly by nine government departments, Beijing said government procurement must use only Chinese products or services unless they are not available within the country or cannot be bought on reasonable commercial or legal terms.
Beijing also said it was launching an investigation into complaints from domestic industry associations who accuse local governments of favouring foreign suppliers in procurement related to the country's Rmb4,000bn ($585bn) economic stimulus package.
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