China releases action plan to improve government procurement

The State Council issued an action plan on improving government procurement, focusing on restoring market order, developing a regulatory system and promoting industrial development during 2024-26, according to a circular released on July 4.

In order to standardize the government procurement market order, major existing problems should be addressed and solved in three years, the circular said.

Special rectification of four types of illegal and irregular behaviors will be continuously carried out, including discriminatory terms against purchasers, arbitrary charges by procurement agencies, and false documents and bid-rigging by providers.

Regular law enforcement inspections will be strengthened. Innovative regulations to enhance effectiveness are required by upgrading the central government procurement electronic platform, establishing and improving the credit management mechanism and strengthening collaborative supervision.

The circular also asked to establish a regulatory system to better serve a unified market. The plan of advancing government procurement system reforms should be conscientiously implemented; and government procurement laws and regulations will be further improved in accordance with the requirements for establishing a modern government procurement system that aligns with international rules, such as the World Trade Organization's Government Procurement Agreement (GPA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

A system of standards for government procurement of domestic products will be established to ensure that products produced in China by enterprises of different ownership systems could participate in government procurement opportunities on an equal footing.

More efforts will be made to support science and technology innovation, support the development of small and medium-sized enterprises (SMEs), and improve the government's green procurement policy.