echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Active Ingredient News > Drugs Articles > The Ministry of Finance spoke again: Fair competition between domestic and foreign enterprises!

    The Ministry of Finance spoke again: Fair competition between domestic and foreign enterprises!

    • Last Update: 2022-11-26
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com

    On November 9, according to the Chinese government procurement network, the 2022 China International Public Procurement Forum was held
    by video.
    With the theme of "Sharing the Future of the Public Procurement Market", the forum was jointly organized
    by the Ministry of Finance and the Shanghai Municipal People's Government.

    At the meeting, the Ministry of Finance stated that China will actively promote high-level opening up
    in the field of government procurement.
    Vice Minister of Finance Xu Hongcai also stressed once again that China's government procurement adheres to the principles of openness, transparency and fair competition, and ensures that domestic and foreign-funded enterprises participate in government procurement competition fairly
    .

    As we all know, as early as October last year, the Ministry of Finance issued the Notice on Implementing Relevant Policies for Equal Treatment of Domestic and Foreign-funded Enterprises in Government Procurement Activities
    .

    The circular clarifies that in government procurement activities, except for procurement items involving national security and state secrets, products produced by domestic and foreign-funded enterprises in China shall not be treated differently
    .
    Products produced in China, regardless of whether their suppliers are domestic or foreign-funded enterprises, should be guaranteed equal rights
    to participate in government procurement activities in accordance with the law.

    In short, medical device products produced by foreign-funded enterprises in China will enjoy equal treatment
    in government procurement.

    In fact, in a sense, such products already belong to the category
    of "domestic".
    Of course, this point is still controversial in the industry
    .

    New definition of "domestic"

    New definition of "domestic"

    In the past year, it is estimated that many people in the industry are confused: are the products produced by imported brands in China "imported" or "domestic"?

    According to the Measures for the Administration of Government Procurement of Imported Products, imported products refer to products
    that enter China through customs declaration and inspection and are produced outside the customs.

    In other words, whether the distinction is "imported" is mainly based on the "customs border" and the place of origin as the criteria for identification
    .
    This is also mentioned
    in the procurement documents of many hospitals.

    Therefore, for the medical equipment produced by foreign-funded machinery enterprises in China, it can also be regarded as domestic and enjoy domestic treatment
    .
    Obviously, from a policy point of view, the definition of "domestic" has changed
    dramatically.

    Previously, everyone understood that "domestic" mainly refers to: equipment
    developed and produced by Chinese enterprises.
    Now, the definition of "domestic" includes not only local brands, but also products produced domestically by multinational companies
    .

    Therefore, it can be seen that in some procurement projects, although it is indicated that "imported" products are not allowed to bid, from the final result, Philips, GE, Siemens and other foreign brands still achieve the winning bid
    .

    In April this year, Philips ventilators won the bid
    in the "Jiangsu Province Primary Medical and Health Institutions and Professional Public Health Institutions Equipment Purchase (Imaging) Public Bidding and Procurement" that did not accept "import" bidding.

    In August, the Cancer Hospital of the Chinese Academy of Medical Sciences issued a bidding announcement with a budget of 23 million yuan to purchase medical magnetic resonance imaging systems, and also indicated that imported products
    were not accepted.
    In the end, Siemens won the bid
    for domestic equipment at a price of 22.
    98 million yuan.

    However, some industry insiders said: "Each province and city have different standards when doing government procurement, and foreign-funded enterprises need to judge whether they are 'domestic'
    according to the actual requirements of different regions.
    " ”

    However, it is undeniable that whether it is the previous "support for domestic production" or the current support for "domestic production", in the past ten years, not only local machinery companies have made rapid progress, but also the "localized" layout of multinational enterprises is increasing
    day by day.

    The general trend: the acceleration of the "localization" layout of multinational machinery enterprises

    The general trend: the acceleration of the "localization" layout of multinational machinery enterprises

    In July this year, the Department of State Treasury of the Ministry of Finance issued the Notice on the Re-opening of the Government Procurement Law of the People's Republic of China (Revised Draft for Solicitation of Comments
    ).

    In Chapter 3 of the Draft Opinions, the first thing mentioned is to support domestic industries
    .
    Similarly, however, the Draft Opinions also make it clear that products produced in China that meet the prescribed value-added ratio should enjoy preferential
    evaluation in government procurement activities.

    If nothing else, after the adoption of the Draft Opinions, although supporting domestic production is the primary premise in future domestic government procurement, foreign-funded enterprises that realize production and research and development in China will also receive more support
    .

    For this point, the first batch of multinational machinery companies led by GPS to enter the domestic market may have been expected for a long time
    .
    Decades of "localization" layout have provided more adequate means of competition for these multinational machinery companies
    .

    Some people say: the current Chinese medical device market is undergoing fundamental changes
    .
    "The market segmentation of lower-level prices has been occupied by state-owned enterprises, and the future path of foreign companies is more dependent on high-precision things to survive
    in China.
    "

    This also requires that foreign-funded equipment companies must introduce more high-end technologies into the domestic market
    .
    Only by putting on the "national brand" coat of the product can we enjoy better treatment
    .

    In fact, this brings advantages and disadvantages
    to local machinery companies.
    Multinational machinery enterprises have brought the world's leading technology, research and development and innovation landing, which has played a vital role in the upgrading of the domestic medical device industry; But at the same time, how should local companies that have lost their policy and price advantages respond?

    But in any case, from the perspective of the country, multinational companies are very welcome to settle high-end medical manufacturing in China
    .
    In this way, the capabilities of local equipment manufacturers, including spare parts suppliers, can be improved
    .
    Compared with simple domestic assembly, when the supply chain is built, it is difficult to be
    replaced.

    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.