New Chinese government procurement rules increase penalties for wrongdoing

Will Green is news editor of Supply Management
8 January 2015

The Chinese government has announced new regulations under its Government Procurement Law to “induce transparency and promote fair competition”.

The State Council, the country’s cabinet, reviewed and passed the regulations at an executive meeting chaired by Premier Li Keqiang on 31 December, according to the state-owned Xinhua news agency.

Under the regulations there will be more public scrutiny of contracts, review committees will be set up and punishments for illegal practices will be increased.

“Procurement contracts should be published through the media, while information concerning the bidding results and transactions will also be made public,” said Xinhua.

“Punishment for illegal practices, such as fraud and back-door operations, will be made more severe.

“The new regulations prioritise energy saving and environmental protection. They favour small companies, less developed regions and ethnic minorities.”

Xinhua reported the changes were “important for law-based, clean government, and will have an important bearing on public trust”.

“Rigid restrictive measures and management will streamline the procurement process, improve efficiency and promote frugality,” said the agency.

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