ANNOUNCEMENT 26 May 2009In May 2009, the government of China announced a change in the local input requirements for the participation in certain public purchases.
NUMBER OF INTERVENTIONS
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
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.