Starting from next year, the Chinese government will provide price evaluation discounts for domestic products in its procurement activities

Starting from next year, China will implement domestic product standards in government procurement and provide a 20% price evaluation discount for domestic products compared to non domestic products in procurement activities.

According to Xinhua News Agency, the General Office of the State Council has issued a notice on the implementation of domestic product standards and related policies in government procurement, which will come into effect on January 1, 2026.

This notice aims to establish a unified, open, competitive and orderly government procurement market system, improve the government procurement system, and ensure equal participation of various business entities in government procurement activities.

According to this notice, the domestic product standards in government procurement refer to products produced within China, and the cost of components produced within China meets the required proportion. Specific products are also required to have their key components and processes produced and completed within China. This standard applies to goods involved in government procurement projects and service projects.

This notice mentions that in government procurement activities, domestic products will be given a 20% price evaluation discount compared to non domestic products. If international treaties or agreements concluded or jointly participated in by the People's Republic of China have other provisions on domestic product policies in government procurement, they shall be implemented in accordance with the relevant treaties or agreements.

The notice proposes that within five years from the date of implementation of this notice, the Ministry of Finance, together with relevant industry regulatory departments, will, based on fully soliciting opinions from domestic and foreign enterprises, industry associations and chambers of commerce, etc., implement classified policies and steadily promote the determination of the cost proportion of components produced in China, as well as the relevant requirements for key components and key processes of specific products. According to the development of different industries, a transition period of three to five years will be set up to gradually establish a domestic product standard system and dynamic adjustment mechanism in government procurement. Before the implementation of the requirements for the proportion of component costs produced within China, products that meet the production requirements within China shall be considered as domestic products in government procurement activities.

The notice emphasizes that government procurement support policies treat all types of business entities, including state-owned enterprises, private enterprises, and foreign-funded enterprises, equally and equally. All regions and departments shall strengthen overall coordination and shall not introduce policies and measures that violate the provisions of this notice. In government procurement activities, brands shall not be designated or the registration location or owner of brands shall not be restricted. Differential treatment or discriminatory treatment shall not be imposed on suppliers based on ownership, organizational form, equity structure, investor nationality, or other unreasonable conditions.