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Business / Policy Watch

China standardizes procurement for more transparency

(Xinhua) Updated: 2015-01-01 13:53

BEIJING - The State Council, China's cabinet, announced on Wednesday new regulations under the Government Procurement Law to induce transparency and promote fair competition.

The regulations were reviewed and passed at an executive meeting of the State Council chaired by Chinese Premier Li Keqiang.

Under the new regulations, procurement information will be made public. Procurement contracts should be published through the media, while information concerning the bidding results and transactions will also be made public.

Supervision and management of procurement will be improved through public scrutiny. Punishment for illegal practices, such as fraud and back-door operations, will be made more severe.

The regulations tighten controls on every link of the procurement chain by setting up review committees.

The new regulations prioritize energy saving and environmental protection. They favor small companies, less developed regions and ethnic minorities.

A statement released after the meeting said that the regulations are important for law-based, clean government, and will have an important bearing on public trust.

Rigid restrictive measures and management will streamline the procurement process, improve efficiency and promote frugality.

The State Council meeting on Wednesday also adjusted the export tax rebate policy by relegating rebate approvals to county-level governments for manufacturers and exporters.

Creditworthy firms may also enjoy tax rebates prior to administrative approval, but approval for firms with bad credit ratings will be strict.

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