China Offers 20% Price Advantage for 'Made in China' Goods in Government Procurement
Starting January 1, the Chinese government will offer a 20% price advantage in procurement bidding for goods labelled 'Made in China'. This policy applies equally to state-owned, private, and foreign companies, promoting fairness and non-discrimination.
The new measures echo practices in the United States and European Union, particularly regarding the proportion of local components. To qualify as 'locally produced', products must meet a certain threshold of domestic component cost proportion. Some items require critical parts and processes to be made in China.
Over the next five years, authorities will refine sector-specific criteria for 'domestically produced products'. They plan to provide a three- to five-year transition period after releasing industry-specific standards. This move aims to boost foreign companies' confidence in operating within the country.
From January 1, 'Made in China' goods will enjoy a 20% price preference in government procurement bidding. The policy promotes fairness and aims to boost foreign companies' confidence in operating in the country. Authorities will refine sector-specific criteria over the next five years, providing a transition period after releasing industry-specific standards.
