General Office of the State Council on Issuing the “Government Procurement Sector”
“Regulating the market, establishing a legal framework, and promoting industrial development”
Notice on the “Three-Year Action Plan (2024–2026)”
General Office of the State Council, Guobanfa [2024] No. 33
People’s Governments of all provinces, autonomous regions, and municipalities directly under the Central Government; all ministries, commissions, and agencies directly under the State Council:
The “Three-Year Action Plan (2024–2026) for ”Regulating Market Order, Establishing a Legal Framework, and Promoting Industrial Development’ in the Field of Government Procurement” has been approved by the State Council. It is hereby issued to you; please ensure its thorough implementation.
General Office of the State Council
June 29, 2024
(This document is for public release.)
Three-Year Action Plan (2024–2026) for “Regulating Market Order, Establishing a Legal Framework, and Promoting Industrial Development” in the Field of Government Procurement
To create a market-oriented, law-based, and international business environment; accelerate the development of a modern industrial system; and promote high-quality economic and social development, this plan has been formulated to address the prominent issues currently existing in the government procurement sector by thoroughly implementing the three-year action plan titled “Rectifying Market Order, Building a Regulatory Framework, and Promoting Industrial Development” (hereinafter referred to as “Rectify, Build, Promote”).
I. General Requirements
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China; earnestly carry out the decisions and arrangements of the Party Central Committee and the State Council regarding accelerating the establishment of a new development paradigm and advancing high-level opening-up; fully, accurately, and comprehensively implement the new development philosophy; adhere to high-quality development; and, in accordance with the relevant requirements of the “Plan for Deepening the Reform of the Government Procurement System,” we will adopt a problem-oriented approach, strengthen top-level design, take into account China’s actual national conditions, align with international government procurement rules, and deepen the reform of the government procurement system. With “consolidation, construction, and promotion” as the main thrust of our work, we will focus on key areas and adopt a multi-pronged approach. We aim to resolve the prominent issues currently existing in the government procurement sector within approximately three years, thereby making the government procurement market order more standardized, substantial progress in the development of the government procurement system, and establish and improve a policy framework for government procurement that promotes modern industrial development.
II. Regulating Market Order and Optimizing the Business Environment
(1) Continue to carry out special campaigns to address four categories of illegal and non-compliant activities
Led by the Ministry of Finance, efforts are underway to explore the establishment of a working mechanism that promotes inter-departmental coordination, collaboration between central and local governments, and public participation. Targeted special rectification campaigns are being continuously carried out to address four types of illegal and non-compliant practices that have been prominently reported in the government procurement sector: procuring entities setting discriminatory terms, procurement agencies charging arbitrary fees, suppliers providing false materials, and suppliers engaging in bid-rigging and collusion. It has publicized typical cases to create an effective deterrent.
(2) Strengthen Routine Administrative Law Enforcement Inspections
To further streamline channels for legal remedies, financial departments at all levels must proactively disclose the telephone numbers and addresses for filing complaints, as well as sample complaint forms, to ensure that “every complaint is addressed.” For complaints involving joint violations by the procuring entity and the procurement agency, a “dual investigation” approach shall be implemented. Launch the development of the second batch of model sites for government procurement administrative adjudication to provide examples in areas such as operational standards, risk prevention and control, handling guidelines, and team building, thereby advancing the centralization of dispute resolution at the provincial level for cases below the provincial level.
(3) Innovate Regulatory Methods and Enhance Work Efficiency
1. Upgrade and modernize the central government procurement electronic platform. Improve information publication and search functions to enhance the completeness and accuracy of government procurement information and increase transparency in government procurement. Gradually implement a system where suppliers and procurement agencies can “register once and operate nationwide,” thereby eliminating local protectionism and hidden barriers. Utilize big data analysis, behavioral early warning systems, and other tools to dynamically monitor key stages of government procurement—such as supplier bidding and project evaluation—to advance smart regulation and enhance regulatory effectiveness.
2. Establish and improve credit management mechanisms. Improve the mechanism for collecting and publishing credit records of serious illegal and dishonest conduct by suppliers, procurement agencies, and evaluation experts. Financial departments at the provincial level and above shall promptly upload complete and accurate information on dishonest conduct to the China Government Procurement Network, which shall share this information in real time with the National Enterprise Credit Information Publicity System and the “Credit China” website, thereby facilitating relevant qualification reviews by procuring entities. Study the feasibility of establishing a credit restoration mechanism for relevant acts of dishonesty after they have been rectified. Refine the evaluation indicator system for procurement agencies to guide procuring entities in selecting the best-qualified agencies. Study and improve restrictive measures targeting suppliers who commit material breaches of contract during contract performance, and urge them to fulfill their contractual obligations in good faith.
3. Strengthen coordinated oversight of government procurement. The finance department shall, in conjunction with market regulation authorities, verify whether suppliers have provided false certification documents or test reports; work with public security authorities to rigorously investigate bid-rigging discovered in government procurement tenders; and collaborate with disciplinary inspection and supervision departments regarding the referral of leads and the investigation and handling of cases, in order to strictly investigate and punish corruption and malpractices in the government procurement sector.
III. Establishing a Legal Framework for Construction to Support a Unified Market
(1) Regulatory Development
We will earnestly implement the “Plan for Deepening the Reform of the Government Procurement System.” In accordance with the requirements for establishing a modern government procurement system and in line with international rules such as the World Trade Organization’s Agreement on Government Procurement (GPA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), we will further improve laws and regulations governing government procurement. We will actively promote amendments to the Government Procurement Law and, in conjunction with the amendment process, revise the implementing regulations as appropriate. We will promote the harmonization of the Government Procurement Law and the Bidding and Tendering Law to enhance the systematic, holistic, and synergistic nature of the government procurement legal framework, thereby supporting the development of a unified national market.
(2) Institutional Development
Study and refine departmental regulations on bidding and tendering for goods and services, non-tender procurement, information disclosure, and objections and complaints; explore elevating systems such as demand management and collaborative innovation procurement to the level of departmental regulations; and gradually establish a systematic, comprehensive, operationally standardized, and efficient government procurement system covering demand management, information disclosure, procurement methods, contract performance, and redress mechanisms. Strengthen the primary responsibility of procuring entities. With project performance as the goal and end-to-end procurement management as the key, encourage procuring entities to enhance internal control management, implement the principle of aligning authority with responsibility, and ensure that “whoever procures is responsible.” Improve procurement transaction mechanisms by reasonably selecting procurement methods and evaluation approaches based on procurement needs, fully implementing the principle of fair competition, and establishing a transaction system that accommodates the diverse needs of procuring entities while encouraging innovation. Strengthen the policy functions of government procurement by increasing support for scientific and technological innovation, green development, and the growth of small and medium-sized enterprises. Refine support measures such as reserved quotas, evaluation preferences, and the publication of demand standards.
(3) Standard Development
1. Establish a standards system for the procurement of domestic products by the government. Develop standards for the procurement of domestic products and gradually establish a standards system for domestic products to ensure that products manufactured in China by enterprises of different ownership structures can participate equally in government procurement activities.
2. Develop categorized government procurement requirements standards. Establish requirements standards for general goods and services in the centralized government procurement catalog, gradually expand the coverage of these standards, and provide guidance to procuring entities for comprehensively, completely, and accurately describing procurement requirements. Revise procurement requirements standards for product packaging to encourage the use of green packaging across society. Research and formulate green procurement requirements for municipal infrastructure and products such as electronic and electrical appliances and new energy vehicles; conduct pilot programs for government procurement to support green highway development; incorporate relevant carbon footprint management requirements into government procurement standards at an appropriate time; and expand the scope of government green procurement. Research and formulate government procurement requirements for innovative products following their commercialization to lead the innovative development of related industries.
3. Develop standardized templates for government procurement by category. Develop standardized templates for bidding documents for goods, construction projects, and services, as well as standardized templates for government procurement contracts, to enhance the standardization and convenience of business entities’ participation in government procurement activities.
IV. Promoting Industrial Development and Implementing National Strategies
(1) Supporting Scientific and Technological Innovation
1. Establish a policy framework for government procurement that supports innovation and complies with international rules. Fully leverage the role of market mechanisms and comprehensively employ measures such as mandatory procurement, preferential procurement, first-purchase orders, and the publication of demand standards to promote the adoption and iterative upgrading of innovative products, thereby fostering a favorable ecosystem for industrial innovation.
2. Establish and improve a cooperative innovation procurement system for government procurement. Guided by the application needs of procuring entities and based on fair competition and risk-sharing between procuring entities and suppliers, implement “first-purchase” programs and establish an integrated management mechanism for the research, development, and application promotion of innovative products, thereby leveraging the role of government procurement in driving innovation and supporting high-quality development.
(2) Supporting the Development of Small and Medium-Sized Enterprises
1. Implement support policies in government procurement of construction projects. For government procurement engineering projects subject to the Bidding Law, policies supporting small and medium-sized enterprises (SMEs) must be fully implemented. For engineering procurement projects exceeding 4 million yuan that are suitable for delivery by SMEs, the policy of gradually increasing the reserved quota from 30% or higher to 40% or higher will be extended through the end of 2026.
2. Support “Government Procurement Loans” for small and medium-sized enterprises (SMEs). Establish channels for sharing central government procurement information with financial institutions, and promptly provide commercial banks with relevant information, such as government procurement contracts from central government departments. All regions should establish and improve working mechanisms for “Government Procurement Loans” for SMEs, promote the integration of relevant systems with financial institutions, and facilitate government procurement financing for both financial institutions and SMEs.
3. Support the revitalization of rural industries. Consolidate and expand the achievements of the poverty alleviation campaign, and ensure that the policy of increasing the reserved proportion of government procurement for agricultural and sideline products from relevant regions yields tangible results. Promote the gradual two-way expansion of the online sales platform for agricultural and sideline products from poverty-stricken areas (the “832 Platform”). This includes attracting more small and medium-sized enterprises that meet the qualification standards—beyond those in existing regions—to become suppliers, and reaching a broader range of demand-side entities—such as labor unions and the general public—in addition to government procurement entities. We will work to improve service quality and upgrade services, help build distinctive agricultural brands, and drive the revitalization of rural industries.
(3) Improve government green procurement policies
1. Formulate and implement government procurement policies that support green products. Give priority to or mandate the procurement of products that have obtained green product certification or meet government green procurement standards, thereby promoting green and low-carbon development.
2. Expand the scope of implementation of policies that support the use of green building materials through government procurement to improve construction quality. The scope will be expanded from 48 cities (or their municipal districts) to 100 cities (or their municipal districts). Government procurement projects—including those for hospitals, schools, office buildings, mixed-use complexes, exhibition halls, affordable housing, and old urban area renovation projects—will be required to mandatorily procure green building materials that meet the standards. Further expansion of the policy’s scope will be explored as appropriate. Strengthen the evaluation and supervision of cities implementing the policy to ensure that policy requirements are fully implemented.
V. Support Measures
(1) Strengthen overall coordination. The Ministry of Finance, in conjunction with the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the Ministry of Housing and Urban-Rural Development, the Ministry of Agriculture and Rural Affairs, the Ministry of Commerce, the State Administration for Market Regulation, the All-China Federation of Supply and Marketing Cooperatives, and other relevant departments and agencies, shall establish a coordination mechanism to comprehensively advance work related to government procurement.
(2) Ensure Effective Implementation. All regions and departments must, in accordance with their respective responsibilities, implement the requirements of this plan to the letter. The Ministry of Finance shall establish a three-year action plan work log for “rectification, construction, and promotion,” clearly defining the division of tasks and completion deadlines for each region and relevant department. A work supervision mechanism shall be established to track the progress of tasks in a timely manner and periodically evaluate the implementation of this plan, ensuring that all tasks are effectively carried out and produce tangible results.
(3) Strengthen Publicity and Training. All regions and departments should promptly publicize and explain relevant government procurement measures, strengthen professional training on key and challenging issues related to these measures, and ensure the smooth progress of all work.