·Some media, including AP and Reuters, labeled China's stimulus measures as "Buy China."

·It was "a misunderstanding."

·China was against trade protectionism and had been sticking to mutually beneficial principles.

    BEIJING, June 26 (Xinhua) -- The government said Friday it was "a misunderstanding" by some foreign media which had labeled China's latest circular to boost domestic demand and step up supervision on construction projects as "protectionism".

    The remarks were jointly made by Yao Jian, spokesman with the Ministry of Commerce, and Li Pumin, spokesman with the National Development and Reform Commission, on Friday.

    China issued a circular in early June to boost domestic demand and step up supervision over public bidding for construction projects.

    Some media, including international news agencies AP and Reuters, labeled it as "Buy China" stimulus measures.

    The spokesmen said that China was against trade protectionism and had been consistently sticking to mutually beneficial principles and actively boosting economic and trade cooperation with other countries amid the global downturn.

    The circular reiterated requirements in the 2002 law on government procurement of local products with fiscal funds and the "local products" also include products from legal branches of foreign companies in China, the spokesmen said.

    And thus it was not new policy targeting China's stimulus plan nor prejudice against foreign companies or goods, the spokesmen said.

    The spokesmen said China had been applying to join the World Trade Organization's agreement on government procurement, which allowed member nations to bid on each other's government tenders.

    China's 2002 government procurement law and requirements on government procurement were not against international obligations, the spokesmen said.

    Chinese Premier Wen Jiabao said Thursday in a telephone conversation with German Chancellor Angela Merkel China would never discriminate against foreign enterprises or products.

Commerce Minister says China won't take trade protectionist actions

    BEIJING, June 27 (Xinhua) -- China always opposes trade protectionism and will not take protectionist actions against overseas companies or foreign goods, Minister of Commerce Chen Deming said here Friday.

    He made the remarks when he met the Minister of Knowledge Economy of the Republic of Korea (ROK), Lee Youn Ho.

    Chen said that media reports were incorrect when they equated China's latest circular to boost domestic demand and step up supervision on construction projects with protectionism.  Full story

Protectionism is no prescription for woes

    BEIJING, April 10 -- China has to learn to better handle the relations between internal and foreign trade and between domestic and external demands to overcome the ongoing global economic crisis.

    Traditional domestic demand includes investment and consumption, with the former having played a pivotal role in driving the growth of the country's GDP. But investment can also give rise to inflation and result in an overheated economy because of an expanded credit and ever-growing production capability. Isn't it common knowledge that large-scale investments are followed by rigid macro-control policies?  Full story