ANNOUNCED AS TEMPORARYNo
Public procurement localisation
On 29 December 2011, the Ministry of Finance and the Ministry of Industry and Information Technology jointly issued the Interim Measures for the Promotion of SMEs through Government Procurement (Caiku '2011' No.181) in order to implement the State Council's Opinions on Further Promoting the Development of SMEs (Guofa'2009'No.36).
According to this measure, government entities should reserve at least 60% of its procurement plan for SMEs unless it affects the normal delivery of government activities and services. In the biddings which are not specifically opened to SMEs, the purchaser should allow a preference margin of 6%-10% to bids by SMEs.
According to the eligibility criteria (Gongxinbulianqiye '2011' No.300) issued by Ministry of Finance, Ministry ofIndustry and Information Technology, National Bureau of Statistics and the National Development and Reform Commission on 18 June 2011, the eligible SMEs shall be established in China and subject to differnent criteria in different sectors. Should foreign representation among SMEs be lower than among non-SMEs in the affected sectors, then this measure effectively curtails the set of public procurement contracts exposed to foreign competition.
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