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.

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Notice on the implementation of policies related to the equal treatment of domestic and foreign-invested enterprises in government procurement activities

CaiKu [2021] 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

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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

财库〔2021〕35号

各中央预算单位，各省、自治区、直辖市、计划单列市财政厅（局），新疆生产建设兵团财政局：

　　为构建统一开放、竞争有序的政府采购市场体系，促进政府采购公平竞争，现就在政府采购活动中平等对待在中国境内设立的内外资企业有关事项通知如下：

　　一、保障内外资企业平等参与政府采购

　　政府采购依法对内外资企业在中国境内生产的产品（包括提供的服务，下同）平等对待。各级预算单位应当严格执行《中华人民共和国政府采购法》和《中华人民共和国外商投资法》等相关法律法规，在政府采购活动中，除涉及国家安全和国家秘密的采购项目外，不得区别对待内外资企业在中国境内生产的产品。在中国境内生产的产品，不论其供应商是内资还是外资企业，均应依法保障其平等参与政府采购活动的权利。

　　二、在政府采购活动中落实平等对待内外资企业的要求

　　各级预算单位在政府采购活动中，不得在政府采购信息发布、供应商资格条件确定和资格审查、评审标准等方面，对内资企业或外商投资企业实行差别待遇或者歧视待遇，不得以所有制形式、组织形式、股权结构、投资者国别、产品品牌以及其他不合理的条件对供应商予以限定，切实保障内外资企业公平竞争。

　　三、平等维护内外资企业的合法权益

　　内外资企业在政府采购活动中，凡认为采购文件、采购过程、中标或者成交结果使自身权益受到损害的，均可依照相关规定提起质疑和投诉。各级财政部门应当严格落实《政府采购质疑和投诉办法》（财政部令第94号），畅通投诉渠道，依法受理并公平处理供应商的投诉，不得在投诉处理中对内外资企业实施差别待遇或者歧视待遇，维护政府采购供应商的合法权益。

　　对于违反本通知要求的规定和做法，以及违规设立产品、供应商等各类备选库、名录库、资格库等规定和做法，各地要及时予以清理纠正，并将清理纠正情况于11月底前报送财政部。

　　财  政  部

　　2021年10月13日

发布日期:  2021年10月25日