ANNOUNCEMENT 24 Feb 2012In February 2012, the government of China announced a change in the local input requirements for the participation in certain public purchases.
NUMBER OF INTERVENTIONS
On 24 February 2012, the Ministry of Industry and Information Technology (MIIT) of the People's Republic of China released the 2012 Official Vehicles Procurement List (Draft Version for soliciting public opinions). In accordance with this List, 412 kinds of autos are on the governmental procurement list. All vehicules on the list are Chinese made brands. All foreign made or joint-venture (JV) made cars are excluded from public procurement list.
It is estimated that total car procurement budget for various levels of Chinese governments is more than 100 billion yuan (more than 15 billion USD). This List is open for public comments and soliciting public opinions till March 9, 2012, then the MIIT will released the final and formal list. If no amendments made on the formal List, foreign auto giants, such as VW (Germany), GM (US), Toyota (Japan) and Nissan (Japan) or their JV companies in China will lose the world's biggest government procurement market.
The Chinese government has not adopted the final version of this List by the deadline of 19 March 2012. However, it is expected that when the final version is released there is little chance foreign made or JV made cars to be added to the final Official Vehicles Procurement List.