The National Development and Reform Commission ("NDRC") has recently drafted and issued the Tendering and Bidding Law of the People's Republic of China (Draft Amendment for Comment) (the "Draft for Comment") for public comment by January 1, 2020.
The Draft for Comment is comprised of 94 articles divided into eight chapters, and regarding the Tendering and Bidding Law in force, it revises 58 articles, adds 28 new articles, removes two articles, and keep eight articles unchanged. Principal changes in eight aspects as below are proposed. The first is pushing ahead the initiative of streamlining administration and delegating powers in the field of tendering and bidding. The second is making the tendering and bidding process more transparent and standardized. The third is guaranteeing the autonomy of tenderees. The fourth is improving the efficiency of the tendering and bidding process. The fifth is resolving the problem of selecting bid-winners that offer the lowest prices or products/services of poor quality. The sixth is giving full play to the policy-level function of tendering and bidding in boosting high-quality development. The seventh is providing legal guarantee for the practical development of tending and bidding. And the eighth is tightening and innovating regulatory approaches to tendering and bidding. Among others, the Draft for Comment clearly defines the scope of projects that must be contracted through tendering and bidding, and significantly loosens the requirements for procurement methods for private investment projects to unleash the vitality of private investment.