CHINA
Since January 2003, last amended in January 2014
Since May 2022
Since July 2022
Since May 2022
Since July 2022
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Government Procurement Law of the People's Republic of China (Order of the President No. 68) (中华人民共和国政府采购法(主席令第68号))
Guofa (2022) No. 12 on a Package of Policy Measures (国发〔2022〕12号 揽子政策措施的通知)
Caiku (2022) No. 19 on Further Strengthening Government Procurement Support for Small and Medium-Sized Enterprises (财库〔2022〕19号 关于进一步加大政府采购支持中小企业力度的通知)
Guofa (2022) No. 12 on a Package of Policy Measures (国发〔2022〕12号 揽子政策措施的通知)
Caiku (2022) No. 19 on Further Strengthening Government Procurement Support for Small and Medium-Sized Enterprises (财库〔2022〕19号 关于进一步加大政府采购支持中小企业力度的通知)
According to Art. 9 of the Government Procurement Law, government procurement must facilitate the achievement of China's policies for economic and social development, including but not limited to environmental protection, assistance to underdeveloped or ethnic minority areas, and the promotion of SMEs.
The Ministry of Finance (MOF) has issued a Notification on Further Supporting Small and Medium-sized Enterprises (SMEs) in Public Procurement (MOF Announcement No. 19) in response to the State Council's Notification on a Package of Policy Measures to Stabilize the Economy (Guo Fa 2022 No.12). This announcement outlines three primary directives for relevant procuring entities: (i) strict implementation of public procurement policies supporting SMEs; (ii) enhancement of price preferences for SMEs; (iii) augmentation of the proportion of reserves allocated for SMEs.
Furthermore, MOF Announcement No. 19 introduces significant modifications to the preferential treatment of SMEs in public procurement. The price deduction preferential rate for small and micro enterprises in goods and service procurement projects has been increased from the previously stipulated 6%-10% (as per Document No. 46 of Caiku 2020) to 10%-20%. Moreover, for large and medium-sized enterprises that form consortia with or subcontract to small and micro enterprises, the preferential rate has been elevated from 2%-3% to 4%-6%.
The Ministry of Finance (MOF) has issued a Notification on Further Supporting Small and Medium-sized Enterprises (SMEs) in Public Procurement (MOF Announcement No. 19) in response to the State Council's Notification on a Package of Policy Measures to Stabilize the Economy (Guo Fa 2022 No.12). This announcement outlines three primary directives for relevant procuring entities: (i) strict implementation of public procurement policies supporting SMEs; (ii) enhancement of price preferences for SMEs; (iii) augmentation of the proportion of reserves allocated for SMEs.
Furthermore, MOF Announcement No. 19 introduces significant modifications to the preferential treatment of SMEs in public procurement. The price deduction preferential rate for small and micro enterprises in goods and service procurement projects has been increased from the previously stipulated 6%-10% (as per Document No. 46 of Caiku 2020) to 10%-20%. Moreover, for large and medium-sized enterprises that form consortia with or subcontract to small and micro enterprises, the preferential rate has been elevated from 2%-3% to 4%-6%.
Coverage Horizontal
Sources
- https://web.archive.org/web/20230307183711/http://www.gov.cn/gongbao/content/2002/content_61590.htm
- https://web.archive.org/web/20230204091126/https://www.gov.cn/zhengce/content/2022-05/31/content_5693159.htm
- https://web.archive.org/web/20231129210004/https://gks.mof.gov.cn/guizhangzhidu/202205/t20220531_3814923.htm
- https://web.archive.org/web/20240718080538/https://www.wto.org/english/tratop_e/tpr_e/s458_e.pdf
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CHINA
Reported in 2022, last reported in 2023
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Domestic preferences in tenders
It is reported that under both its government procurement and tendering and bidding regimes, China continues to implement policies favouring products, services, and technologies made or developed by Chinese-owned and Chinese-controlled companies through explicit and implicit requirements. These policies hinder foreign companies from competing fairly in China. Despite China's commitment to equal treatment, foreign companies report instances where tendering documents mandate "domestic brands" and "indigenous designs." Since China has not yet established clear rules on what constitutes a "domestic product," procurement officials often prefer to err on the side of caution and purchase products from domestic Chinese companies.
Coverage Horizontal
Sources
- https://web.archive.org/web/20240330123614/https://ustr.gov/sites/default/files/2024%20NTE%20Report_1.pdf
- https://web.archive.org/web/20230919071254/https://ustr.gov/sites/default/files/2022%20National%20Trade%20Estimate%20Report%20on%20Foreign%20Trade%20Barriers.pdf
- https://web.archive.org/web/20240318070736/https://europeanchamber.oss-cn-beijing.aliyuncs.com/upload/documents/documents/European_Business_in_China_2023_2024_Position_Paper[1167].pdf
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CHINA
N/A
Pillar Public procurement of ICT goods and online services |
Indicator Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
China is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2002.
Coverage Horizontal
CHINA
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
0.71%
Coverage rate of zero-tariffs on ICT goods (%)
60.46%
Coverage: ICT goods
Sources
- http://wits.worldbank.org/WITS/
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
CHINA
Since December 2021, entry into force in January 2022
Since December 2001, entry into force in January 2002, last amended in March 2022
Since September 2000, last amended in February 2016
Since December 2001, entry into force in January 2002, last amended in March 2022
Since September 2000, last amended in February 2016
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Maximum foreign equity share
Special Management Measures for Foreign Investment Access (Negative List) (2021 Edition) (外商投资准入特别管理措施 (负面清单) (2021 年版)
Provisions on Administration of Foreign-Invested Telecommunications Enterprises (外商投资电信企业管理规定)
Telecommunications Regulations of the People’s Republic of China (中华人民共和国电信条例)
Provisions on Administration of Foreign-Invested Telecommunications Enterprises (外商投资电信企业管理规定)
Telecommunications Regulations of the People’s Republic of China (中华人民共和国电信条例)
In accordance with Special Management Measure No. 14 of the Special Administrative Measures (Negative List) for Foreign Investment Access (2021 Edition), foreign investors are prohibited from holding more than 50% equity interest in any enterprise engaged in value-added telecommunication services, with the exception of e-commerce, domestic multi-party communication services, store-and-forward services, and call centre services. Similarly, Art. 6 of the Provisions on the Administration of Foreign-Invested Telecommunications Enterprises stipulates that foreign investors may not hold more than 50% equity interest in enterprises conducting value-added telecommunication services, unless otherwise prescribed by the state. This provision was revised in 2022 to include the exception “unless otherwise prescribed by the State,” aligning with national and local regulations aimed at further relaxing restrictions on the proportion of foreign ownership in the telecommunications sector. As specified in Art. 8 of the Telecommunications Regulations, value-added telecom businesses refer to telecommunication and information services provided through public network infrastructure. These services include electronic mail, voice mailboxes, online database storage and retrieval, electronic data interchange, online data processing and transaction processing, value-added fax, internet service provision (ISP), internet content provision (ICP), and video teleconferencing.
Coverage Value-added telecom businesses
Sources
- https://web.archive.org/web/20231112132402/https://www.tjftz.gov.cn/tisip/upload/files/2022/4/TheSpecialAdministrativeMeures(NegativeList)forForeignInvestmentAccess(2021Edition).pdf
- https://web.archive.org/web/20241221220755/http://policy.mofcom.gov.cn/claw/clawContent.shtml?id=94681
- https://web.archive.org/web/20241221221810/https://www.gov.cn/gongbao/content/2016/content_5139478.htm
- https://web.archive.org/web/20241221222204/https://www1.hkexnews.hk/listedco/listconews/sehk/2023/1229/2023122900009.pdf
- https://web.archive.org/web/20241221222318/https://www.hankunlaw.com/downloadfile/newsAndInsights/54e9a18f08bfacce4745f028adff924a.pdf
- https://web.archive.org/web/20241221222455/https://www.lehmanlaw.com/resource-centre/faqs/information-technology/what-does-basic-telecom-business-and-value-added-telecom-business-refer-to.html
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