(1) The State Council's Office has issued a notice on implementing domestic product standards and related policies in government procurement, which will take effect on January 1, 2026. The notice aims to establish a unified and open government procurement market system, improve the government procurement system, and ensure equal participation of all types of economic entities in government procurement activities.
(2) Domestic products must meet the following conditions to be considered domestic products: (1) They must be produced within China, with raw materials, components, and products undergoing a transformation within China; (2) They must meet the prescribed proportion of domestic components, with the formula being determined by the Ministry of Finance in conjunction with relevant industry authorities; and (3) Specific products must meet the requirements for domestic key components and key processes.
(3) The domestic product standard applies to goods, including goods and services in government procurement projects, but excludes certain categories such as buildings, cultural relics, and special plants and animals.
(4) Government procurement activities involving both domestic and non-domestic products will provide a 20% price discount for domestic products. If a supplier provides at least 80% of the total products with domestic components, the supplier will be eligible for a 20% price discount for all products.
(5) Purchasing units and procurement agencies must clearly specify the requirements for suppliers to provide a declaration statement or other proof of compliance with domestic product standards. Suppliers who provide false statements or proof may be subject to penalties.
(6) All types of economic entities, including state-owned enterprises, private enterprises, and foreign-invested enterprises, will be treated equally in government procurement activities.
(7) The Ministry of Finance will determine the proportion of domestic components and the specific requirements for key components and key processes for different products. The proportion and requirements will be implemented within 5 years, with a 3-5 year transition period for different industries.
(8) Disputes over domestic product standards will be handled in accordance with government procurement laws and regulations. The Ministry of Finance will be responsible for reviewing and verifying the evidence provided by suppliers.
(9) The notice will be implemented on January 1, 2026.