ART - Challenges to Implementing the World Trade Organization Government Procurement Agreement in China 2015

The document discusses the challenges faced by suppliers in China when it comes to government procurement. It focuses on two key laws, the Government Procurement Law (GPL) and the Tendering and Bidding Law (TBL), and examines how they fail to meet the requirements of the World Trade Organization's Government Procurement Agreement (GPA). The TBL does not provide a formal process for bid protests and lacks complaint procedures. The review process described in the TBL is also inconsistent with the GPA's requirement for review by an impartial authority. Additionally, different administrative departments in China apply different review procedures, making the procurement challenge process complex for suppliers. The TBL also fails to provide for an impartial review procedure as required by the GPA. The GPL, while providing a better framework for challenging procurement decisions, also falls short of meeting the GPA's requirements. The protest system outlined in the GPL primarily relies on a review of documents and records, with hearings only provided if deemed necessary by the financial department. This is in contrast to the GPA's requirement for protesting contractors to have representation when challenging a procurement decision. The GPL also fails to provide an impartial appellate review of protest decisions, as required by the GPA. The document also mentions that the GPL allows for a third appeal through litigation at the People's Court. However, litigating against the government in China poses challenges, and it is uncertain whether Chinese adjudication will be an effective way to address procurement disputes under the GPA. Furthermore, the document highlights that suppliers may find themselves in deep trouble if they attempt to resolve a conflict-of-law issue. This adds to the challenges faced by suppliers in navigating the government procurement process in China. Overall, the document provides a comprehensive analysis of the shortcomings of the TBL and GPL in meeting the requirements of the GPA and discusses the various challenges faced by suppliers in China's government procurement process.