Local govts urged to 'Buy Chinese

IN CHINA, foreign technology companies are not the only ones facing regulations that favour products made in the country.

Beijing has been quietly pushing local governments and ministries to 'Buy Chinese', especially after the global recession in late 2008.

In May last year, the Chinese government said preference ought to be given to domestic products when spending the 4 trillion yuan (S$824 billion) stimulus.

The latest protectionist measure against foreign technology firms came in November last year, requiring products and technology used by Chinese government agencies to contain intellectual property developed and owned locally.

US businesses have accused Beijing of favouring 'national champions' - a likely reference to Chinese giants such as search engine Baidu and computer maker Lenovo.

Other high-tech industries have had to navigate similar restrictions in China as the country seeks a short cut to acquiring foreign technology.

In the automobile industry, for example, government regulations require any foreign investor to form a joint venture with a local company.

Source: Straits Times, 28 Jan 2010.