Qin Gang, spokesman of China’s Ministry of Foreign Affairs, defended Beijing’s government purchase policies. In early June, China’s National Development and Reform Commission, together with a number of other ministries, issued a notice requiring government bodies to source domestically for projects financed by the state. According to Mr. Qin, the so called “Buy Chinese” position is based on a 2002 government procurement law issued long before the government stimulus measures. China’s decision to continue its government purchase policies faced widespread criticism among China’s trading partners worldwide. International Economists were surprised about Beijing’s position, emphasizing that China–as one of the world’s biggest exporting nations–had more to lose than other countries by protectionist restrictions.
In its quarterly report released today in Beijing, the World Bank raised its 2009 growth forecast for China to 7.2 percent, up from 6.5 percent in its March forecast. The World Bank acknowledged the positive effects of China’s stimulus measures, most notably booming loans and high fixed asset investment. While the World Bank analysts saw no need for additional fiscal measures this year they urged Beijing to retain room for stimulus measures in 2010 as consumption growth might slow down and the global economy might need longer to recover.
