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Bill Radke: China just imposed a “buy Chinese” policy on its economic stimulus package. The move is provoking an angry response from an E.U. business group. From London, Stephen Beard reports.

Stephen Beard: The Chinese government has ruled that its stimulus projects must use Chinese goods and services. Beijing wants to promote the domestic economy as demand for its exports has declined.

But the European Union Chamber of Commerce says that sends the wrong signal and is inconsistent. Only a few months ago Beijing described a proposed “Buy American” clause in the U.S. as “poison.”

Bob McKee of Independent Strategy:

Bob McKee: Perhaps the Chinese feel they are only doing what everybody else but if this sort of thing becomes prevalent not just in government procurement but across the board then you move into a much more protectionist environment — always a bad sign.

As a member of the World Trade Organisation China is required to treat foreign and domestic goods and services equally. But the E.U. or U.S. may not be able to make a formal complaint. Beijing hasn’t signed a treaty that covers government spending.

In London, this is Stephen Beard for Marketplace.