🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

U.S. business worried China stimulus favours locals

Published 04/17/2009, 02:54 AM
Updated 04/17/2009, 02:56 AM

BEIJING, April 17 (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 criticised the 'Buy American' provisions of the U.S. stimulus package finalised 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. (Reporting by Jason Subler; Editing by Ken Wills)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.