In a significant move towards greater openness, China’s Ministry of Finance has announced that foreign-funded companies manufacturing in China will now receive the same benefits as domestic firms in government procurement bids. This means that if a foreign company produces goods within China, it can enjoy a 20% price preference, just like Chinese-owned companies.
This policy aims to level the playing field, allowing all companies, regardless of who owns them, to compete fairly in supplying goods to the government. It’s part of China’s broader efforts to open up its markets and create an environment where businesses can thrive based on merit.
To qualify, products must be made entirely within China’s borders, from the raw materials to the finished product. The policy also sets specific requirements for how much of a product’s components need to be sourced domestically and mandates that key parts must be made in China.
These new standards will be rolled out gradually, focusing mainly on industrial goods. They won’t apply to products like food, livestock, or minerals.
This announcement reflects China’s commitment, made earlier this year during a key Communist Party meeting, to treat foreign-funded enterprises equally in areas like resource access, licensing, and government contracts.
The Ministry of Finance crafted this policy after looking at international practices and considering China’s unique situation. The public is invited to share their opinions on these measures until January 4, 2025.
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China to give foreign companies equal treatment in govt procurement
cgtn.com
