How to win government contracts and tenders in China

Navigating Government Procurement in China: Strategies for Success Under Evolving Trade Policies

Securing government contracts in China offers considerable opportunities but also presents complex regulatory requirements for foreign firms. Understanding China's evolving policies on foreign investments, procurement procedures, company registration guidelines, and documentation is critical. This guide outlines how firms can successfully navigate China's government procurement processes, referencing authoritative sources to ensure accuracy.

Understanding Regulatory Frameworks for Public Procurement

Alignment with International Standards

China has been progressively refining its foreign investment landscape to align more closely with international procurement standards, although it currently remains outside the WTO’s Government Procurement Agreement (GPA). Recent government actions demonstrate its intent to integrate international best practices and transparency into domestic procurement systems.

• In line with international progress, China reduced foreign investment restrictions from 31 to 29 categories, specifically easing limitations in sectors like telecommunications and healthcare, signaling further openness to foreign involvement in strategic industries. [1][3]
• The National Development and Reform Commission (NDRC) is working on aligning domestic procurement practices with international norms to foster fairness and transparency. [1]

Domestic Product Preferences

Recent policy developments have clarified criteria for products considered "domestic" within China's public procurement processes. Regardless of firm ownership, enterprises must comply with standardized domestic production benchmarks to compete effectively in public tenders across China.

• The 2025 Action Plan specifies clear domestic product standards, ensuring equal opportunities for domestic and foreign-invested enterprises (FIEs) willing to meet mandated localization production and sourcing criteria. [6][16]
• Relevant catalogues of encouraged industries include advanced manufacturing, environmental protection, and high-tech equipment sectors, reflecting China's strategic priorities. [2]

Company Registration and Compliance Requirements

Establishing Your Entity in China

Before bidding on government contracts, foreign companies must establish an official business presence within China, either through wholly foreign-owned enterprises (WFOEs) or joint ventures. Essential registration procedures include:

• Obtaining a valid Business License through municipal market regulation bodies. Application documents should be officially notarized and translated into Chinese, authenticated appropriately at overseas Chinese consulates where required. [11][14]
• Ensuring continuous tax compliance under Value Added Tax (VAT) and Corporate Income Tax (CIT) regulations, verified through annual and quarterly filings managed by China's State Taxation Administration. [7]

Sector-Specific Regulatory Approvals

Certain sectors require additional regulatory approvals prior to participation, especially industries involving sensitive data or national security considerations.

• Cybersecurity and data compliance policies, supervised by the Cyberspace Administration of China (CAC), require stringent compliance with China's Personal Information Protection Law (PIPL) and Data Security Law (DSL). [15]
• Preparation for regulatory reviews of necessary technical documentation is essential to avoid exclusion from procurement opportunities in regulated industries.

Documentation Requirements for Bidding

Technical Compliance Documentation

Firms bidding on Chinese government contracts must ensure their propositions strictly conform to localized technical specifications, commonly detailed in GB/T series national standards published by Chinese Standardization Administration.

• Technical proposals must precisely match official tender requirements without deviations, as non-compliance generally leads to automatic disqualification. [10]
• Understanding local standards thoroughly via official Chinese standards databases is recommended to eliminate costly misunderstandings during preparation.

Financial Documentation and Integrity Proof

Bidders should present robust financial stability documents to demonstrate solvency and reliability during tender evaluations.

• Provide audited financial statements covering at least the previous three fiscal years, clearly indicating financial capacity and accountability.
• Prepare financial guarantees or bank assurances to secure procurement advances or contract performance guarantees required by procuring Chinese government agencies. [5][8]

Addressing Common Compliance Challenges

Technology Transfer Concerns

Historically, some sectors required technology transfers as conditions for market entry. Recent governmental reforms are moving away from strictly enforced mandatory transfers, aligning closer to internationally recognized standards of fairness and openness. Nevertheless, companies must stay informed of sector-specific regulations and ensure compliance with updates. [15]

Navigating Without GPA Coverage

As China is not yet part of the WTO's GPA, foreign suppliers currently rely on bilateral trade and investment agreements offering narrower procurement access than GPA membership. It's essential to research individual bilateral arrangements between your country and China for relevant opportunities. [17]

Strategic Partnerships and Local Integration

Forming partnerships with established local entities can greatly streamline procurement processes, providing valuable insights into local administrative expectations and cultural nuances. Strong local relationships ("guanxi") often enhance the probability of success in tender bids and help companies meet nuanced compliance requirements effectively.

• Engaging reputable local consultants familiar with government procurement practices and possessing relevant industry experience accelerates adaptation to China's evolving regulatory landscape.
• Integrating corporate social responsibility (CSR) projects aligned with China's Sustainable Development initiatives and global environmental, social, and governance (ESG) standards can positively influence local and national stakeholder evaluations.

Conclusion

Winning government contracts in China requires meticulous preparation, detailed understanding of evolving trade policies, careful adherence to official registration procedures, and compliance with documentation requirements as outlined by authoritative bodies such as the NDRC, MOFCOM, and relevant WTO guidelines. Ongoing engagement with official sources, continual policy monitoring, strategic local partnerships, and awareness of cultural contexts will substantially strengthen your firm's prospects in China's competitive public procurement environment.

[1] https://english.www.gov.cn/news/202502/20/content_WS67b7263cc6d0868f4e8efd78.html
[2] https://english.shanghai.gov.cn/en-PolicyInsights/20250221/00c97ebd58eb488ea742ac5c08205887.html
[3] http://english.scio.gov.cn/m/in-depth/2025-03/07/content_117751738.html
[4] https://www.realinstitutoelcano.org/en/analyses/china-and-wto-reform-what-to-expect/
[5] https://www.osc.ny.gov/files/procurement/pdf/rfp-0001.pdf
[6] https://english.www.gov.cn/news/202502/22/content_WS67b9044dc6d0868f4e8efdff.html
[7] https://wsb.sh.gov.cn/ztzl/shzxzb/20250226/06511aad834a4be98911a91bd9491abe.html
[8] https://english.www.gov.cn/news/202503/07/content_WS67ca2fc4c6d0868f4e8f0861.html
[9] https://sam.gov/opportunities
[10] https://www.tn.gov/content/dam/tn/generalservices/documents/cpo/library/2025/Procurement_Procedures_Manual_of_the_CPO_03-05-25.pdf
[11] https://www.mondaq.com/china/corporate-and-company-law/1593748/the-essential-checklist-for-signing-contracts-with-chinese-companies
[12] https://www.pilieromazza.com/update-president-trumps-executive-orders-impose-tariffs-on-products-from-canada-mexico-and-china-the-cost-to-government-contractors/
[13] https://scholarship.law.uc.edu/cgi/viewcontent.cgi?article=1065&context=ipclj
[14] https://www.registrationchina.com
[15] https://crsreports.congress.gov/product/pdf/IF/IF11284
[16] https://tams.wto.org/node/10466
[17] https://trade.ec.europa.eu/access-to-markets/en/content/government-contracts-outside-eu
[18] https://www.handbook.fca.org.uk/handbook/MAR.pdf
[19] https://wto.org/accessions