June 2011 | Angeline Albert
is to ditch some of the "indigenous innovation" rules for government
purchases that prevent foreign companies winning public deals.
Chinese Ministry of Finance (MOF) has announced from 1 July
three regulations that connect government purchasing to domestic innovation
rules will be scrapped.
buyers were only allowed to award contracts to suppliers who could prove their
product and its parts were made in China. From tomorrow, purchasers will be
able to award contracts to vendors regardless of the product’s origin. The
innovation restrictions, introduced in 2007, had made it difficult for foreign
companies to gain access to government deals.
announcement was welcomed as “a step in the right direction” by the US-China
Business Council (USCBC), which represents 240 US companies doing business in
China. It had highlighted these rules as a problem during talks with the
Chinese government earlier this year.
president John Frisbie said in a statement: "The MOF notice is directed to
all central and local government agencies, an important development given that
companies encounter indigenous innovation policies and barriers to sales at
multiple government levels.
the measures represent only a portion of the full list of regulations that tie
indigenous innovation and government procurement, the elimination of these
measures is an important step toward fulfilling pledges made by [Chinese]
his January visit to Washington, Chinese president Hu Jintao said his
government would not discriminate against products made with foreign technology
when awarding government procurement contracts.
April, the EuropeanUnion Chamber of Commerce in China (EUCCC) said China’s public
procurement laws caused European
companies to miss contract opportunities in the country worth $1 trillion
survey by the American Chamber of Commerce in the People’s Republic of China the
month before found 57 per cent of US
firms doing business in China had expected to lose business as a result of the
“indigenous innovation product accreditation” policy,
and 37 per cent said they had already lost business.