Zhinews of Shenzhen Satellite TV: 

The scale of government procurement in China is huge and plays an important role in guiding and promoting socio-economic development. What new measures will be taken in government procurement next to promote innovation and establish a modern industrial system? Thank you.

Li Xianzhong: 

Thank you for your question. In recent years, the MOF has actively utilized government procurement to support technological innovation, green environmental protection, small and medium-sized enterprises (SMEs) and rural revitalization, assisting in the high-quality development of the economy and society. Next, in accordance with the decisions and deployments of the Party Central Committee and the State Council, the MOF will continuously establish and improve a government procurement policy system that conforms to international rules, focusing on supporting the development of new quality productive forces and constructing a modern industrial system. This year, our work will mainly involve three aspects:

First, we will study and establish a cooperative innovation government procurement system. Cooperative innovation procurement refers to the procurement of innovative products that are not currently available on the market and require research and development, with the procurers starting to get involved as early as in the R&D stage, purchasing R&D services first and then purchasing the newly developed products. We summarized the characteristics of this new procurement method: it not only compensates suppliers for their R&D costs but also places orders in the form of a commitment to purchase a certain amount of innovative products, stimulating corporate innovation vitality through sharing R&D risks and jointly exploring initial markets. This approach is conducive to promoting the integrated management of innovative products from discovering demand and R&D to application and promotion, better supporting the innovation of applied technologies and the transformation of sci-tech achievements. Previously, the MOF did research and drafted the interim regulatory measures for cooperative innovation government procurement, and publicly solicited opinions from all parties. The measures are now ready for issuance and will be released in the near future.

Second, we will continue to improve the policies which support government procurement of green products. In recent years, as part of efforts to promote green transformation and upgrade of the building industry, the MOF has worked with relevant departments to adopt policies which support government procurement of green building materials in order to construct higher-quality buildings. Trials have been launched in various places. This year, based on knowledge gained from these trials, the ministry will expand the scope of policy implementation, with the number of trial cities rising from 48 to 100 and the number of green building material products covered by government procurement standards increasing from 75 to 100. By doing so, we will further intensify our support for promoting green buildings and using green building materials. Meanwhile, the ministry will further deepen and expand policies that support government procurement of other green products, strengthening policies and measures involving compulsory or preferential government procurement of eligible green products. All these will ensure that the government continues to leverage its role as a model and leader in procurement of green products.

Third, we will continue to implement policies involving equal treatment of domestic and foreign enterprises in terms of government procurement. Products made and services provided by both domestic and foreign enterprises in China must be treated on an equal footing during government procurement. This has been our consistent policy. In 2021, the MOF issued a notice on implementing policies involving equal treatment of domestic and foreign enterprises in terms of government procurement , reiterating and stressing this principle. Next, we will enhance regular supervision over procurement staff and agencies, and conduct special rectification focusing on their unequal treatment of domestic and foreign enterprises. We will intensify law enforcement and punish by law those who violate laws and regulations. In addition, we will learn from standard international practices and, after research, set up standards for government procurement of products made in China, aiming to better ensure the implementation of policies involving equal treatment of domestic and foreign enterprises in terms of government procurement.

That's all from me. Thank you.