China commentary blasts "Buy American" plan

[babylonsister]

http://www.reuters.com/article/politicsNews/idUSTRE51E05420090215

China commentary blasts "Buy American" plan


BEIJING (Reuters) - China's official Xinhua news agency slammed the "Buy American" requirement of the U.S. economic stimulus package, saying in a commentary that trade protectionism is a "poison" that will harm poor countries.

The remarks are the first indication of the reaction in Beijing to the U.S. measure, which has been criticized by U.S. business groups that fear it could invite other countries to keep American goods out of their own stimulus programs.

"History and economic theory show that in facing a financial crisis, trade protectionism is not a way out, but rather could become just the poison that worsens global economic hardships," Xinhua said in the overnight commentary, issued in response to the passing of the U.S. plan.

The U.S. Congress approved the $787 billion plan to jump-start the world's biggest economy on Friday, stipulating that public works and building projects funded by the stimulus use only U.S.-made goods, including iron and steel.

The plan does require that procurement be carried out in a manner consistent with U.S. obligations under multilateral and bilateral trade pacts -- potentially giving Canada, the European Union, Japan and some other countries the chance to benefit from the additional spending.

But countries such as China, India, Brazil and Russia, which are not members of an international government procurement agreement, would be shut out.

Xinhua cited the example of the Great Depression of the 1930s as showing that moves to protect domestic markets, and ensuing trade wars, could have only negative effects on the global economy.

"Trade protectionism will also cause catastrophic effects to some poor countries, making the current financial crisis one of a humanitarian crisis as well," it said.

[Occam Bandage]

1. Xinhua does have a bit of a point, in that if other nations

decide to retaliate in kind, we would lose far more jobs than we would have saved with the buy-American requirement. They are also correct that Americans would happily condemn foreigners to poverty to preserve our own jobs. That said, it is the primary duty of each government to ensure the well-being of its own citizens, and only a secondary duty to ensure the well-being of citizens of other nations. If the Obama administration can somehow prevent retaliatory trade practices, the buy-American provision will have been a good one.

[Deja Q]

4. If globalization is about raising standards of life for all, how come it's being played out like a

stupid game?

[Occam Bandage]

5. What in politics isn't?

[Hello_Kitty]

8. Read:

http://www.citizen.org/trade/offshoring/government/federal/articles.cfm?ID=18343

There is a lot of false hype about Buy America/n laws being spread and it needs to stop. The whole Public Citizen site is an excellent resource on globalization and trade issues.

[Deja Q]

2. Looks like they're going to whine either way. Thje global economy ultimately affects them too.

I know China is part of the BRIC nation block (Brazil, Russia, India, China) but they are acting as if they need to be in a CRIB.

BTW: Another DUer put up an article from Indiatimes saying how Indian companies are throwing out expatriates for "local talent".

Has China's government told its citizens to "Buy Chinese"?

[Occam Bandage]

6. I giggled at BRIC -> CRIB. nt

[Hello_Kitty]

3. "Poison": Interesting word choice there, China.

[mac56]

7. yeah, I caught that too.

:thumbsup:

[Greyhound]

9. If China loses the American market to sell into, they will collapse in a year and

that will probably spark WWIII.

When the Soviet Union collapsed we were flush and able to pour money and resources in to keep the lid on Russia. Now the world is in economic chaos and China is several times the size of Russia. A trade war will rapidly devolve into a shooting war.
:scared:

[zbdent]

10. wait ... I thought ReRushicans were against the Commies ...

this shows that the Chinese "Communists" are really in line with Republican thinking ... if such a term can be used ... they literally receive their instructions via radio waves ...