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.
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