* Two Chinese ministries defend policy on stimulus bidding
* Say recent circular not aimed at foreign products
* Beijing vows not to discriminate against foreign firms
BEIJING, June 26 (Reuters) - A recent instruction to state agencies to procure local products whenever possible for government-backed projects is not a protectionist measure aimed at foreign firms, two Chinese ministries said on Friday.
The Ministry of Commerce and the National Development and Reform Commission (NDRC), China's powerful planning agency, said that Beijing, in issuing the circular in early June, had sought to stop what it viewed as discrimination against local firms.
They said the notice merely reinforced existing guidelines and reiterated China's existing rules for government procurement.
"It is not a new measure to help China's economic stimulus, and it is not a protectionist act against foreign firms or products," the statement said.
The notice raised eyebrows at the World Bank and among some European officials. [ID:nPEK64450] [ID:nLM510357]
"It is a misunderstanding for some international media to interpret it as a trade protectionist measure of 'buying Chinese products'," the commerce ministry and NDRC said.
Several Chinese provinces rolled out "buy local" programmes earlier this year to capitalise on the stimulus package while Western executives have complained recently at not being given a fair crack at China's booming market in wind turbines. [ID:nPEK176822] [ID:nPEK178419] [ID:nPEK319921]
The two agencies argued China had treated domestic and foreign products fairly and pledged that China would never take any measures against foreign firms or products.
Premier Wen Jiabao told German Chancellor Angela Merkel on Thursday that China would never discriminate against foreign enterprises or products, according to the official People's Daily.
China's regulations on government procurement do not run counter to its international obligations, as China is not yet a member of the government procurement agreement under the World Trade Organisation, the statement said. (Reporting by Zhou Xin and Jason Subler; Editing by Tomasz Janowski)