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China Government Procurement Agreement

April 8, 2021 Uncategorised 0

[8] The full text of the implementing regulation (January 11, 2010) can be found on the website of the Legislative Office of the State Council at www.chinalaw.gov.cn/article/cazjgg/201001/201001000193904.shtml. The revision focuses on taking price quality into account when choosing winning bids. It encourages bidders to consider the overall cost of the life cycle when acquiring them and to select the bids with the lowest energy consumption and the lowest environmental impacts. It adds provisions to prevent the selection of winners solely on the basis of price and limits the application of the assessed method of the lowest offer price to projects with general technical or performance standards or without specific requirements. A bidders` committee must refuse bids with abnormally low prices if the supplier is unable to explain the adequacy. The AMP, a multi-lateral contract, obliges its members to open their national public procurement, as the GPA intends to expand international trade. The proposal would reduce from 20 days to 15 days the minimum time between the issuance of tender documents and the submission of bids. In addition, in some cases it would allow an additional reduction of 10 days, for example. B for the purchase of standard equipment and materials and for small projects using simple construction techniques. As has already been said, one of the drivers of China`s public procurement reform is the ongoing negotiation of accession to the GPA, a multilateral trade agreement under the WTO, which requires open, fair and transparent competitive conditions in the area of public procurement, including GPA Member States. China`s accession to the GPA would open up important business opportunities not only for Chinese companies abroad, but also for foreign players in China. In particular, foreign companies would benefit from better access to the huge public market. China`s GPA membership plan has recently received a major boost.

In its formal application in 2007, China submitted its initial offer on the terms of membership of the GPA and has revised this offer several times since then. On April 10, 2018, President Xi Jinping announced that China would accelerate the process of accession to the GPA. On October 20, 2019, China distributed its sixth revised market access offer, which offered additional commitments exceeding its last offer in 2014. The new offer is currently being debated in the WTO GPA committee. However, since China must conduct bilateral negotiations with each GPA member (including the United States), the date of China`s accession is not yet known. The fact that the U.S. government is considering withdrawing from the GPA adds another level of uncertainty to the overall process. During the negotiations for China`s accession to the GPA, the focus was on the markets it will cover as part of the agreement presented by its last offer in October 2019. However, it must also ensure that the laws and regulations governing covered contracts are in compliance with the agreement. The LPG is much more oriented towards the requirements of the AMP than the TBL. On February 27, 2020, china`s Ministry of Finance (MOF) released its 2020 legislative agenda and published a plan to amend a number of procurement laws and regulations (see here).