China’s First-Ever “Domestic Product” Definition: Government Procurement Implications for Foreign Companies

Key Takeaways

• Domestic products will receive a 20% price evaluation advantage in public tenders, applied equally to foreign-invested and Chinese firms.

• To qualify, products must meet substantial transformation and local content requirements.

• The broadest definition of domestic product will apply while precise content thresholds are being developed over the next five years. Afterward, there will be a transitional period of three to five years.