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U.S. business worried China stimulus favors locals

Discussion in 'Political Zone' started by Kangaroo, Apr 17, 2009.

  1. Kangaroo

    Kangaroo Active Member

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    http://www.reuters.com/article/ousiv/idUSTRE53G1BK20090417

    Yet we where so evil for wanting to do this :bang2:

    U.S. business worried China stimulus favors locals
    Fri Apr 17, 2009 5:31am EDT
    BEIJING (Reuters) - U.S. companies are concerned that they are not getting a fair chance at contracts linked to China's 4 trillion yuan ($585 billion) stimulus package, a leading U.S. business group said on Friday.

    For its part, Beijing has strongly criticized the 'Buy American' provisions of the U.S. stimulus package finalized in February, saying it is opposed to any rise in protectionist measures in the wake of the global economic slowdown.

    But Myron Brilliant, senior vice president of the U.S. Chamber of Commerce, said that China's own stimulus package lacked clarity in terms of how foreign firms can bid for contracts on infrastructure projects.

    "We are very concerned that the stimulus package may have a significant local bias," Brilliant told reporters in Beijing.

    "There is certainly a perception in the foreign business community that a lot of these contracts are going to domestic providers. And there is, I think, a legitimate concern that there isn't a fair and transparent way for the foreign business community to invest in these projects and to contribute."

    Expectations that Beijing's stimulus measures will help lead to an early recovery in the world's third-largest economy have helped support share prices in markets around the world in recent weeks, in anticipation that China will be able to help anchor the global economy.

    China said on Thursday that its economy grew 6.1 percent in the first quarter from a year earlier. While that marked a slowdown in year-on-year terms from the 6.8 percent pace in the fourth quarter of 2008, analysts said it represented a rebound in sequential growth.

    The comments by Brilliant, however, suggest that Western firms could find it difficult to benefit directly from China's increased spending.

    "I think that's a lost opportunity if that in fact is how it manifests itself," he said.
  2. BrAinPaiNt

    BrAinPaiNt Backwoods Sexy Staff Member

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    Well free trade between the US and other countries has not been a fair exchange for a long time so I doubt this is a shocker to many.
  3. Temo

    Temo Well-Known Member

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    Define "other countries"
  4. BrAinPaiNt

    BrAinPaiNt Backwoods Sexy Staff Member

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    Countries that the US trades with that are not named the US...like Mexico, China or Japan for example.
  5. Temo

    Temo Well-Known Member

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    I don't agree on Mexico or Japan. I think the US has equal or advantageous trading relations with *almost* every country, and that's its important to recognize that "free trade" and "fair trade" is not the same as "equal trade".

    I will say though that in the entire world, China by far practices the most egregious violations of free and fair trade principles. It was heartening earlier this year to hear the Obama administration come out with rhetoric that was cirtical of China's currency manipulations, but it remains to be seen if they'll continue to take a stand (or if they can, at all).

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