PRC Government Procurement Law

Promulgated: June 29 2002
Effective: January 1 2003
Applicability: For the purposes of this Law, "government procurement" means procurement of goods, works and services that are within legally formulated catalogues of centralized procurement or are above procurement limits by government authorities, institutions and social organizations using government funds. Procurement includes purchase, lease, entrustment and employment (Article 2). In government procurement financed by international organization loans or foreign government loans where there is specific agreement between the financing party and the Chinese party in respect of the procurement, such agreement may apply without prejudice to State and public interests (Article 84).

Main contents: According to the Law, the government shall procure goods, works and services in the PRC unless they are not available in the PRC or not available upon reasonable commercial conditions, are not for use in the PRC, or are subject to contrary provisions of other laws or regulations (Article 10). Items of centralized procurement catalogues shall be procured through centralized procurement agencies, which shall be established by people's governments at the level of autonomous prefectures and cities divided into several districts and above (Articles 16 and 18). Suppliers of government procurement can be legal persons, natural persons or other organizations (Article 21). Selection of suppliers shall not be based on unreasonably unequal or discriminatory criteria (Article 22). Public invitation for bids shall be the primary method of government procurement (Article 26). In certain specified circumstances, government procurement may be conducted through private invitation for bids, competitive negotiation and other methods (Articles 29 to 32). Procedures for each of these procurement methods are provided in the Law (Articles 33 to 40). The Law also contains procedures for challenging and complaining against allegedly questionable government procurement (Part Six).
Related legislation: PRC, Invitation and Submission of Bids Law, Aug 30 1999, CLP 1999 No.8 p34