China harshly criticizes 'Buy American' protectionism

China's official said in a commentary that trade protectionism is a "poison" that will harm poor countries.

China harshly criticizes 'Buy American' protectionism
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 criticised by U.S. business groups that fear it could invite other countries to keep American goods out of their own stimulus programmes.

"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.

International critics from such as Canada, the European Union, Japan and some other countries came over US plan, saying it would cause "trade war".

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.

Reuters
Last Mod: 15 Şubat 2009, 18:24
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