ANNOUNCEMENT 15 Nov 2009In November 2009, the government of China announced a change in the local input requirements for the participation in certain public purchases.
NUMBER OF INTERVENTIONS
An English translation of Resolution 618 can be found at http://www.ssd.com/website/pdf/china/Notice_Translation_China_Law_Alert_Dec_.pdf
The following memo may be of interest:
Memo from APSO Worldwide from 9 December 2009. Avaliable from < http://www.israeltrade.org.cn/hebrew/APCO%20Note%20-%20Government%20Procurement%20Market%20to%20Further%20Tighten%20for%20Foreign%20Products%20091209%20(2).pdf >
On 15 November 2009, China's Ministry of Science and Technology (MOST), the National Development and Reform Commission (NDRC), and the Ministry of Finance (MOF) jointly published a new directive related to government procurement titled the 'Notification Regarding the Launch of National Indigenous Innovation Product Accreditation Work for 2009.' The directive aims to promote the usage of Chinese products (by creating a directory of accredited products that are eligible for government procurement contracts) and thereby to encourage an increase in innovation and technology development.
This Directive (Number 618) requires that successful applicants to be on the above-mentioned directory be legal entities in China that can demonstrate their ownership of the relevant intellectual property to make a given product. Accreditation is for two to four years and can be renewed. Firms were given 25 days, that is, until 10 December 2010, to comply with this procedure.
The Directive applies to the following high-tech products: Computers and application equipment; Communications products; Modern Office Equipment; Software; New Energy and new energy devices; and High-efficiency and energy-saving products.
At a minimum, this directive creates an accreditation scheme that will discriminate against foreign firms that are not located in China and that seek to supply the listed products.