In a significant move to promote equality and openness in its government procurement market, China’s Ministry of Finance (MOF) has announced that foreign-funded companies will be granted the same treatment as Chinese companies.
This policy change is aimed at fostering a unified, open, and competitive government procurement market, as well as a market-oriented, law-based, and internationalized business environment.
According to the MOF notice, products manufactured by foreign-funded companies in China will be eligible for the same 20 per cent price preference for domestic goods in government procurement bids.
The notice reads in part: “This policy will treat domestic and foreign-funded enterprises equally, with any company, regardless of its ownership, able to benefit from the policy as long as its products meet the criteria.
“To be eligible, products must be manufactured within China’s customs territory throughout their production stages, from raw materials to finished goods. The notice also specifies the required ratios for domestic product components. It stipulates that for certain items, the production of key parts and essential processes must take place in China.
“This policy change reflects China’s commitment to creating a level playing field for all market players.”
The country has pledged to ensure national treatment for foreign-funded enterprises in terms of access to production factors, license applications, standards setting, and government procurement.
The new measures are open for public opinion until January 4, 2025, and are expected to promote equality, openness, and competitiveness in China’s government procurement market.
