State agencies told to buy local

PUBLISHED : Tuesday, 26 February, 2008, 12:00am
UPDATED : Tuesday, 26 February, 2008, 12:00am

The mainland plans to introduce strict rules for government procurement of imported products, with the aim of protecting domestically manufactured products and promoting innovation, local media reported.

The Ministry of Finance has requested governments at all levels to purchase mainland-made products as a priority under new administrative measures, the People's Daily reported at the weekend.

Purchasers will only be allowed to procure imported products following approval from their superiors' financial department and if they cannot find the products they need made by domestic manufacturers at a reasonable price and of a good quality.

If it is deemed necessary to buy imported products, government purchasers should submit materials including photocopies of any regulations allowing the import and a report from a panel that should include a legal expert and a product-technology expert who do not work within the department concerned.

Officials in charge of purchasing departments that procured imports without submitting the requested materials would be named and shamed.

Those providing fake materials to compete for bids or colluding with suppliers would be fined between 5 per cent and 10 per cent of the purchasing sum.

The measures would be applicable to activities in which any state organ, public institution or organisation purchased imported products directly or through entrustment by using treasury money. Imported products that have already entered the country would also be included.

Small hi-tech development companies in Shenzhen have welcomed the regulation, saying the move would offer them more opportunity to compete with foreign companies.

'There will be a great market to us if the regulation is properly implemented in China,' said Zhao Dongyu , head of Kingstal hi-tech company, which focuses on developing automatic book circulation systems for libraries.

'We are the only domestic company in this field,' he said. 'Most universities and institutes use similar products to foreign companies now. It would be really good news if they could use our system.'