The Ministry of Finance (MOF) issued the Notice on Implementing Policies of Equal Treatment to Both Domestic and Foreign-Invested Enterprises in Government Procurement (hereinafter referred to as the Notice) emphasizing that products manufactured in China by foreign companies must be treated equally in government procurement activities, regardless of forms of organization, equity structures, nationalities of the investors, brands, and other unreasonable restrictions. The Notice also urges local governments to review criteria in government procurement documents and remove any discriminatory measures. Echoing the Notice, certain local governments have taken corresponding measures. For instance, the Tianjin municipal government implemented self-inspection to avoid discriminatory treatment for foreign brands if the products were manufactured in China.

Despite China’s efforts to enforce fairer conditions by releasing the Notice and participating in rounds of negotiations for joining the WTO’s Government Procurement Agreement (GPA), foreign enterprises still face many challenges with government procurement in China. Those challenges may potentially increase as China-US tensions become filled with more uncertainties. Those uncertainties largely entail China’s concern for supply chain security and therefore their consideration of domestic substitution in sensitive sectors.