The Ministry of Finance Pledges Equal Treatment to Foreign Firms in Government Procurement

On October 13, 2021, The Ministry of Finance released its Circular on Implementing the Policies of Granting Equal Treatment to Domestic and Foreign-funded Businesses in Government Procurement Activities.

The Circular requires treating products made by either domestic or foreign-funded businesses in China (including services provided) equally in government procurement activities, without treating them differentially except for procurement items involving national security and state secrets. It is also made clear that budget organizations at all levels shall not exercise differential or discriminatory treatment on domestic or foreign-funded businesses in their release of government procurement information, examination of qualifications, or review of criteria, and shall not impose unreasonable requirements to restrict their selection of suppliers. Local government should promptly rectify practices of violating the Circular and report such rectifications to the Ministry of Finance by the end of November.