"China National Indigenous Innovation Procedures", or: No more foreign products in Chinese Procurement

The Chinese government recently issued rules for developing a national catalogue of “national indigenous innovation products” to receive government procurement preferences. (The rules have been issued by MOST, NDRC and MoF.) These products include: - Computer devices - Communication products - Office equipment - software - energy equipment - energy efficient equipment. The criteria for selection are highly restrictive and aimed at excluding non-domestic firms.

This policy would effectively shut out foreign products from the government procurement market in China. Under the newly issued rules, only products that contain Chinese proprietary intellectual property would be eligible for government procurement.

The rules call for product applications in a number of high-tech fields to be submitted by December 10. The number of products covered by this process is expected to expand in the future.