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Balance Tilts in Favor of Local Firms

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Joerg Wuttke, president of the European Chamber, was quoted as saying by China Economic Weekly that "the Chinese government seems to have readily wiped foreign providers out of the country's 4-trillion-yuan stimulus package".

Last month, all foreign companies had lost in the first round bid for a 5-billion-euro project for 25 sets of wind turbine generators, including the world's leading producers GE International Inc and Vestas Wind Systems A/S.

Wuttke was not available to comment on Monday as he was on a trip to Germany.

But some analysts argue that foreign companies already enjoy a level playing ground - if not a preferred position - in the use of the stimulus budget, and the NDRC's recent directives would not attract accusations of protectionism.

"In the stimulus package, there is no clause or rule to limit foreign suppliers. Chinese and foreign companies have an equal right to compete," said Ma Haitao, a professor at the Central University of Finance and Economics.

Wang Zhile, a senior researcher at the Research Academy of the Ministry of Commerce, suggested that the government provide some relief to machinery manufacturers which do not meet the current clause on track records so that they have a chance instead of being ruled out.

(China Daily June 16, 2009)

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