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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Singapore Asia Pacific World Search Search: US group appeals to China to avoid protectionism By JOE McDONALD,AP Business Writer AP - 1 hour 18 minutes ago BEIJING - An American business lobby appealed to Beijing on Monday to avoid protectionism as it spends its huge stimulus and warned that efforts to build up Chinese companies to dominate domestic industries might shut out foreign competitors. ADVERTISEMENT In a report on business conditions in China, the American Chamber of Commerce in China the chamber said it saw "signs of protectionist policies" in both Chinese and U.S. stimulus efforts. It called on both sides to avoid "nationalist inclinations" that could hamper trade and hurt economic growth. "In China, U.S. companies can help contribute to the domestic recovery, and the Chinese suppliers of these companies have as much to gain from the stimulus spending as other Chinese companies, but only if they can compete fairly for projects," said chamber vice chairman Mark Duval, director of business operations for Motorola China, at a news conference. Some companies report that lower-level Chinese officials are favoring suppliers in their home province when spending stimulus money, said the chamber chairman, John D. Watkins, a vice president of engine maker Cummins Inc. Business groups and ordinary Chinese have appealed to Beijing to release more details of its 4 trillion yuan ($586 billion) stimulus. The plan calls for reducing reliance on exports by pumping money into China's economy through spending on building highways and other public works. The bulk of the money has gone to state companies, but some is starting to flow to the private sector. Beijing has criticized "buy American" provisions in Washington's stimulus favoring American steel, iron and manufactured goods for government projects. They have promised to avoid similar restrictions in their own spending. The American chamber, which represents some 1,200 companies, also said regulation in China has become less transparent and predictable. It appealed to regulators to release details of how they will enforce a new anti-monopoly law under which they blocked Coca-Cola Co.'s purchase of a Chinese juice maker. The report warned that Beijing's effort to create "national champions" to dominate industries including steel, telecommunications and auto manufacturing could keep out foreign and private competitors and consumers. "The goal of moving towards a more flexible market based economy should take precedence over policies favoring certain companies or local companies," Duval said. The group appealed to China to move faster toward joining the World Trade Organization's Government Procurement Agreement, which requires members to treat foreign and domestic suppliers equally when the government buys goods and services. Businesspeople say such a step could greatly increase opportunities for foreign suppliers in China, where the government is a major customer for software, technology and many other goods. Beijing started talks last year with the United States, the European Union and other trading partners on joining the GPA. But diplomats say China's initial offers and demand for a long phase-in period are considered too limited. ___ American Chamber of Commerce in China: http://www.amchamchina.org Email Story IM Story Printable View Blog This Recommend this article 0 users recommend Sign in to recommend this article » Most Recommended Stories » Related Articles: China's Economy Euro drops steeply vs yen on risk aversionReuters - 1 hour 15 minutes ago US group appeals to China to avoid protectionismAP - 1 hour 18 minutes ago F&C AuM dip 6 pct in Q1, in JV with China's Hua XiaReuters - 1 hour 25 minutes ago World Bank, IMF say crisis becoming 'human calamity'AFP - 1 hour 43 minutes ago Related Articles: Business China's CNPC poised for $3 bln dollar-bill issueReuters - 40 minutes ago Sharp posts 125.8 billion yen annual lossAP - 40 minutes ago BOJ FOCUS-Bank of Japan to predict deeper slump, hold ratesReuters - 42 minutes ago NEC Electronics, Renesas to merge chip businessesAP - 53 minutes ago US businesses fret China, US protectionism may riseReuters - 55 minutes ago Related Full Coverage China Economy china economy All Full Coverage Most Popular – Business Viewed Obama dominates in first 100 days 'Golden Girls' Beatrice Arthur, dead at 86 Charred meat linked to pancreatic cancer risk $1 tln at risk in German banks: report Downturn hits Elton John, Paul McCartney View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! 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