China: Implementation of State Council Opinions on imported goods

Measure #0258 | Published 13 Jul 2009 ▲

Description

On 26 May 2009, the National Development and Reform Commission (NDRC) officially announced its implemention of measures to ensure that local content would be prioritized in government contracts. The notification was also signed by the Ministries of Industry and Information Technology (MII), Supervision (MS), Housing and Urban-Rural Development (MHURD), Transport (MT), Railways (MR), Water Resources (MWR) and Commerce (MC), and the Legislative Affairs body of the State Council.

 

The announcement calls for the use of domestically produced goods in any project that is funded by government investment and that is classified as government procurement, except in those circumstances in which the required goods or services cannot be sourced locally. In situations in which imports must be purchased, the procurement of such goods and services will only be permitted after approval is obtained from the appropriate ministry. The document also calls on the NDRC, MII and MS to stregthen supervision of procurement of imported machinery and electrical equipment. It explicitly states that "limiting the use of domestically-produced goods" in favour of the acquisition of imported goods will be investigated and punished by the appropriate authorities.

 

The NDRC's announcement follows the release of a document by the General Office of the State Council on 10 April 2009 entitled Opinions for Further Strenghtening the Management of Government Procurement. The document, which did not have legal force, urged government ministries and agencies to consider means of encouraging the use of local content in government procurement.

Any Evidence-Based Deliberation:

Question Result
Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? No
Is there any evidence that alternatives to the proposed measure were considered? No
Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? No
Was such evidence identified? No
Is such evidence publicly available? No
Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? No
Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? No
Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? No
Did the government state its intention to review the measure within one year of implementation? No

Implementing Jurisdiction:

Affected Trading Partners:


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Measure type:

Affected Sectors:

Affected Tariff Lines:


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Date Discovered: 09/07/2009

Implemented: Yes

Date of inception: 26 May 2009

GTA Evaluation: Red

Source:

The Central People's Government of the People's Republic of China, NDRC Legislation (2009) NO.1361, 26 May 2009, http://www.gov.cn/zwgk/2009-06/04/content_1331847.htm

Government Response:

Glossary of trade terms