China's Ministry of Finance (MOF) has announced a significant policy shift aimed at fostering a more inclusive and competitive government procurement market. Under the new guidelines, products manufactured by foreign-funded companies in China will receive the same 20 percent price preference as domestic goods in government procurement bids.
This move underscores China's commitment to creating a level playing field for all market players, regardless of ownership. According to the MOF, any company, domestic or foreign-funded, can benefit from this policy as long as its products meet the established criteria.
The policy mandates that eligible products must be manufactured entirely within China's customs territory, covering all stages from raw materials to finished goods. Additionally, for certain items, the production of key components and essential processes must take place in China. These standards will be gradually established and will primarily apply to goods in the industrial sector, excluding agricultural, forestry, livestock, fishery products, and mineral resources.
Drawing on international experience and considering China's specific conditions, the MOF aims to foster a unified, open, and competitive procurement market. This initiative is part of China's broader strategy to ensure national treatment for foreign-funded enterprises in areas such as access to production factors, license applications, standards setting, and government procurement.
The public is invited to provide feedback on the policy until January 4, 2025, as China continues its efforts to create a market-oriented, law-based, and internationally integrated business environment.
Reference(s):
China to give foreign companies equal treatment in govt procurement
cgtn.com
