USCBC Comments on the Government Procurement Law (Draft Revision)

The US-China Business Council (USCBC) appreciates the opportunity to submit comments on behalf of its member companies to the Standing Committee of the National People’s Congress (NPCSC) on the Government Procurement Law (Draft Revision) (herein, “the Draft”). USCBC supports the efforts undertaken by the Ministry of Finance (MOF) and the NPCSC to standardize and unify government procurement practices. The Draft represents an important step toward optimizing the business environment for government procurement and regulating procurement practices.  

USCBC is a private, nonpartisan, nonprofit trade association of more than 260 American companies operating in China. Our members include many leading companies with longstanding operations in both the global and Chinese markets, and they have made significant contributions to China’s economic development in areas such as technological innovation and industrial cooperation. 

USCBC notes that the Draft, while building on government procurement practices and incorporating internationally accepted rules, introduces positive adjustments, including ensuring fair competition and equal participation in government procurement for all types of market entities, shifting procurement evaluation beyond the lowest price toward greater emphasis on overall value, expanding the scope of the law’s application, and further aligning China’s framework with international standards. These revisions demonstrate the science-based and forward-looking approach to the legislation. 

Meanwhile, USCBC and its members hope that NPCSC will further consider certain issues in the Draft that may affect the ability of foreign-invested enterprises (FIEs) to participate in government procurement on an equal basis. To further strengthen the Draft and better leverage government procurement as a tool for optimizing resource allocation, promoting fair competition, and improving the quality of public services, USCBC respectfully offers the following recommendations for further consideration.