Ministry of Finance, Measures for the Administration of the Priority Purchase and Order of Self-initiated Innovative Products by the Government

The term “order” refers to the determination of research and development, and manufacturing organizations among the whole society by way of government procurement for major innovative products, technologies and soft scientific research topics (Products for Order) for which the state needs research and development (Article 4).

Main Contents: Products for Priority Purchase shall fulfil the following criteria:

(1) they are self-initiated innovative products recognized by the state;

(2) they fulfil the development requirements of the national economy, and represent the development direction of advanced technology;

(3) the producers, manufacturers and suppliers are enterprises or public institutions with Chinese legal personality in China;

(4) they are put on the market for the first time and, despite their lack of market competitiveness for the time being, possess relatively high market potentials and need key support;

(5) they have potential production capacity and reliable quality; and

(6) they are in compliance with state laws, administrative regulations and policies (Article 8).

Article 12 lists the criteria for Products for Order:

(1) they are in compliance with state laws and administrative regulations, and state industrial and technology policies and other relevant policies;

(2) they are major innovative products or technologies of which the state needs research and development, but that have not been put into production and use at the moment;

(3) the status of the rights in the products is clear, and the company owns the intellectual property rights of the product upon completion of development;

(4) their level of innovation is high and involve the core technologies and key techniques of product manufacturing; or the principles of the application of new technologies and ideas of new design are fundamental improvements on the original products in the respects of structure, materials and techniques, and are able to enhance the functions of the products markedly, or are able to set the first technology standards within or outside China; and

(5) they have potential economic benefits and relatively good market prospects or they can replace imports.

Related Legislation: Implementation of Several Ancillary Policies for the , Feb 7 2006; and PRC Government Procurement Law (Revised in 2014)