Wednesday, June 17, 2009

Buy China Policy

The "Financial Times" reports today that "China has introduced an explicit “Buy Chinese” policy as part of its economic stimulus program in a move that will amplify tensions with trade partners and increase the likelihood of protectionism around the world. In an edict released jointly by nine government departments, Beijing said government procurement must use only Chinese products or services unless they were not available within the country or could not be bought on reasonable commercial or legal terms."

Anyone remember the names of Smoot and Hawley? If not, you probably better brush up on your history, especially after the government just announced that the CPI had biggest annual drop in nearly 60 years.

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