China ends policy favoring local firms
Source: Agencies |
July 1, 2011, Friday
|
Print Edition
Print Edition
CHINA has repealed a policy favoring Chinese companies in government purchases of computers and other technology that had triggered complaints by some foreign companies and governments that it "violated free trade."
It was the second time in a month that China repealed a technology policy after complaints by its trading partners. The US government announced on June 7 China was withdrawing measures American officials said improperly subsidized Chinese wind turbine makers.
The Ministry of Finance said on Wednesday it would stop enforcing procurement rules that are part of a decade-old "indigenous innovation" campaign to spur domestic technology development. They required government agencies to favor Chinese makers in six areas including computers and clean power.
"This repeal represents a forward step toward leveling the playing field in the government procurement market in China," said Davide Cucino, president of the European Union Chamber of Commerce in China.
Foreign businesses had complained the rules would hamper or eliminate access to fast-growing technology markets in China, where the government often is the leading purchaser of computers and other advanced equipment.
Chinese officials agreed to stop the policies during President Hu Jintao's visit to Washington in January.
The repeal is a "meaningful step by the Chinese government in delinking government procurement from indigenous innovation," said Ted Dean, chairman of the American Chamber of Commerce in China.
It was the second time in a month that China repealed a technology policy after complaints by its trading partners. The US government announced on June 7 China was withdrawing measures American officials said improperly subsidized Chinese wind turbine makers.
The Ministry of Finance said on Wednesday it would stop enforcing procurement rules that are part of a decade-old "indigenous innovation" campaign to spur domestic technology development. They required government agencies to favor Chinese makers in six areas including computers and clean power.
"This repeal represents a forward step toward leveling the playing field in the government procurement market in China," said Davide Cucino, president of the European Union Chamber of Commerce in China.
Foreign businesses had complained the rules would hamper or eliminate access to fast-growing technology markets in China, where the government often is the leading purchaser of computers and other advanced equipment.
Chinese officials agreed to stop the policies during President Hu Jintao's visit to Washington in January.
The repeal is a "meaningful step by the Chinese government in delinking government procurement from indigenous innovation," said Ted Dean, chairman of the American Chamber of Commerce in China.
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