China scraps contentious government procurement rule

China is scrapping rules for government purchases of computers and other technology that favor domestic products, a crucial step toward addressing complaints by foreign companies and governments that the country was violating free trade, AP reported. The Finance Ministry said Wednesday it would no longer enforce a policy that required government agencies to purchase products from domestic firms in six areas, including computers, clean power and communications. The procurement regulation was part of the broader, decade-old “indigenous innovation” campaign to spur Chinese technological development. This marks the second time in a month that Beijing has changed a technology policy: On June 7 the US announced that China was repealing measures that American officials claimed were improperly subsidizing Chinese wind turbine makers.