On 13 October 2021, the Ministry of Finance released the Notice on Implementing Equal Treatment Policy of Domestic and Foreign-funded Enterprises in Government Procurement. The document was formulated with the objective of building a unified, open government procurement market system with orderly and fair competition; it comes after several rounds of lobbying by European companies and SESEC as well.

The main highlights of the document are summarized as follows：

  • Ensuring the equal participation of domestic and foreign-funded enterprises in government procurement

According to the Notice, government procurement should treat products (including services, similarly hereinafter) produced in China by domestic and foreign-funded enterprises equally in accordance with the law. Except for procurement projects involving national security and secrets, all procuring entities should not apply double standards for products produced by domestic and foreign-funded enterprises in government procurement activities. Products produced in China have equal rights to participate in government procurement activities in accordance with the law, regardless of whether they have been produced by domestic or foreign-funded enterprises.

  • Implementing the requirements for the equal treatment of domestic and foreign-funded enterprises in government procurement activities

During government procurement processes, procuring entities at all levels should not make discriminatory treatment of domestic enterprises or foreign-funded enterprises, including through early release of information, eligibility check, review, and evaluation of suppliers. Procuring entities should 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 essential to guarantee a level playing field for domestic and foreign-funded enterprises.

  • Safeguarding the legitimate rights and interests of domestic and foreign-funded enterprises

Domestic and foreign-funded enterprises that believe their legitimate rights and interests were damaged in procurement documents, processes, selection or transactions, may file complaints in accordance with relevant regulations. Financial departments at all levels shall not make different treatment or discriminatory treatment of domestic and foreign-funded enterprises when dealing with complaints, and shall safeguard the legitimate rights and interests of government procurement suppliers.