Notice on Implementing Equal Treatment of Domestic and Foreign-funded Enterprises Policy in Government Procurement

In order to build a unified, open government procurement market system with orderly and fair competition, Ministry of Finance released the Notice on Implementing Equal Treatment of Domestic and Foreign-funded Enterprises Policy in Government Procurement on October 13, 2021. The main contents are as follows：

1. Ensure that domestic and foreign-funded enterprises participate in government procurement equally

Government procurement should treat products (including services, similarly hereinafter) produced in China by domestic and foreign-funded enterprises equally in accordance with the law. The budget entities at all levels shall strictly comply with relevant laws and regulations including Government Procurement Law of the People's Republic of China and Foreign Investment Law of the People's Republic of China. Except for procurement projects involving national security and secrets, all budget entities should not apply double standards for products produced by domestic and foreign-funded enterprises in government procurement activities. Products produced in China, whether their suppliers are domestic or foreign-funded enterprises, have equal rights to participate in government procurement activities in accordance with the law.

2. Implement the requirements for equal treatment of domestic and foreign-funded enterprises in government procurement activities

Budget entities at all levels shall not make discriminatory treatment to domestic enterprises or  foreign-funded enterprises during government procurement process, including information release of government procurement and qualification recognition, review, and evaluation of suppliers. They shall not restrict suppliers because of their ownership form, organization type, equity structure, the nationality of investors, product brand and other irrational reasons. These requirements are important to guarantee a level playing field for domestic and foreign-funded enterprises.

3. Safeguard the legitimate rights and interests of domestic and foreign-funded enterprises

Domestic and foreign-funded enterprises who believe that their rights and interests are damaged in procurement documents, procurement process, bid winning or transaction process, may file challenges and complaints in accordance with relevant regulations. Financial departments at all levels shall strictly implement Measures for Challenges and Complaints against Government Procurement (Order No.94 of the Ministry of Finance), smooth complaint channels, accept and fairly handle supplier complaints in accordance with the law. They shall not make different treatment or discriminatory treatment for domestic and foreign-funded enterprises when dealing with complaints, and shall safeguard the legitimate rights and interests of government procurement suppliers.

For provisions and practices that violate this notice, and other illegal behavior such as setting up alternatives, directory and qualification database for products and suppliers, local government should promptly cracked down on the cases, correct the behavior, and submit the situation to the Ministry of Finance before the end of November.