Govt procurement: Finance Ministry reiterates foreign-invested companies must not be discriminated
"ensure fair competition between the domestic & foreign-invested enterprises"
One of the top complaints from foreign-invested companies in China is on government procurement. As your Pekingnologist just came over this 关于在政府采购活动中落实平等对待内外资企业有关政策的通知 Notice on the implementation of policies related to the equal treatment of domestic and foreign-invested enterprises in government procurement activities on the website of the Ministry of Finance published on Oct. 25, 2021, here is a full translation.
Notice on the implementation of policies related to the equal treatment of domestic and foreign-invested enterprises in government procurement activities
CaiKu  No. 35
Units under the central budget, the finance departments(bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government, cities under separate state-planning, and the finance department of Xinjiang Production and Construction Corps:
In order to build a unified, open, competitive, and orderly government procurement market system and promote fair competition in government procurement, (we) hereby notify the following on matters related to the equal treatment of domestic and foreign-invested enterprises established in China in government procurement activities.
First, protect the equal participation of domestic and foreign-invested enterprises in government procurement.
In accordance with the law, government procurement shall provide equal treatment for products manufactured (hereinafter including the services provisioned) in China by domestic and foreign-invested companies.
Units relying on the budget at all levels shall strictly implement the 中华人民共和国政府采购法 "Government Procurement Law of the People's Republic of China(ENG)" and 中华人民共和国外商投资法 "Foreign Investment Law of the People's Republic of China(ENG)" and other relevant laws and regulations in government procurement activities, except for procurement projects involving national security and state secrets, shall not differentiate between domestic and foreign-invested enterprises on products manufactured in China. The right to participate in government procurement activities on an equal footing shall be, in accordance with the law, protected for products manufactured in China, regardless of whether the supplier is a domestic or foreign-invested enterprise, shall be protected.
Second, the implementation of equal treatment of domestic and foreign enterprises in government procurement activities.
Units relying on the budget at all levels in government procurement activities shall not implement differential or discriminatory treatment for domestic enterprises or foreign-invested enterprises in information dissemination, supplier qualification, and evaluation criteria, etc. They shall not limit suppliers based on the form of ownership, organizational form, equity structure, investor country, product brand, and other unreasonable conditions. They shall effectively ensure fair competition between the domestic and foreign-invested enterprises.
Third, equal protection of the legitimate rights and interests of domestic and foreign-invested enterprises.
Domestic and foreign-invested enterprises in government procurement activities, where they believe their rights and interests are harmed as a result of procurement documents, procurement process, the winning bid, or the results of the transaction, are entitled to file challenges, and complaints in accordance with relevant regulations/provisions.
Finance departments at all levels shall strictly implement the 《政府采购质疑和投诉办法》"Measures for Challenges and Complaints against Government Procurement(ENG)" (Ministry of Finance Order No. 94), open and smooth complaint channels, accept and fairly deal with complaints from suppliers in accordance with the law, shall not implement differential or discriminatory treatment of domestic and foreign enterprises in the handling of complaints, and safeguard the legitimate rights and interests of government procurement suppliers.
For provisions and practices in violation of the requirements by this notice, as well as violations by provisions and practices in forms of establishing various candidate pools, directories, and qualification pools for products and suppliers, all regions shall clean them up and make corrections in a timely fashion, and report their cleaning-up and correction to the Ministry of Finance by the end of November.
Ministry of Finance
October 13, 2021
Published: October 25, 2021
财 政 部