Academic journal article Cross - Cultural Communication

Chinese Government Procurement Legislation: Process, Patterns and Future Reform

Academic journal article Cross - Cultural Communication

Chinese Government Procurement Legislation: Process, Patterns and Future Reform

Article excerpt

Abstract

The authors agreed with the integration of Law on Tenders and Bids and unified government procurement legislation. The idea of Improvement tries to maintain the existing project procurement system in bidding. As with previously mentioned, Law on Tenders and Bids makes the practice of private procurement activities within the adjustment range is flawed jurisprudence and should be adjusted rather than maintained. Even if the bidding is a general way to choose suppliers, purely private procurement should also be allowed to trade on the basis of bilateral consultations and selected procedures as they see fit rather than force them to apply rigid "Bidding" provisions.

Key words: Government procurement legislation; Tenders and bids; Private procurement

INTRODUCTION

The legislative model of government procurement in China is characterized by decentralized model compared with other countries. Law on Tenders and Bids and then a comprehensive government procurement law is developed. Moreover, the latter does not absorb all of the former, with two laws existing in parallel. China's current system of government procurement laws in parallel produces a lot of internal conflict and bring difficult to application of law, thus undermining the stability of legal system. The authors also agreed with the integration of Law on Tenders and Bids and unified government procurement legislation.

1. THE NECESSITY OF LEGISLATION FOR GOVERNMENT PROCUREMENT

In view of the characteristics of government procurement compared to private procurement, government procurement has special needs in law different from that of private procurement. More stringent constraints on procurement decisions should be required by legal norms. Specifically the special needs of government procurement in law are what the following states.

1-1 Requirement of Ensuring Normativity of Procurement Acts by Law

In the procurement process, private persons can independently decide purchase mode and procedure according to their actual needs on the basis of complying with relevant laws about fair trade and take the consequences independently. In contrast, government procurement needs more mandatory regulations to ensure the normativity of procurement activities, namely ensuring that procurement body adopts statutory purchase pattern depending on the size, object and time requirements ot the procurement.

Firstly, government procurement requires reasonable division of labor and mutual checks and balances. The tor supervision over government procurement should be separated from centralized procuring agency, and centralized procuring agency should also be separated from project the procurement department. Entities of procurement management and enforcement should be separated in order to ensure fairness of procurement. The department for management over private procurement can only be the government, and purchaser of private procurement is a private entity, so the problem of separation does not exist.

Secondly, government procurement needs to take into account benefit and efficiency at the same time and reasonably determine the scope of centralized procurement and decentralized procurement. Activities of centralized procurement agency shall meet the requirements of lower purchase price than the average market price, higher procurement efficiency, good quality and good service. Private purchases can flexibly adjust requirements of quality and efficiency according to their own needs.

Thirdly, there are laws that regulate stringently choice of procurement methods, procurement procedures and relief for suppliers for government procurement and so on. Private purchases only need to follow the principle of party autonomy in private law and then make procurement decisions according to their preferences, and its relief does not require a special procedure.

1.2 Requirement of Ensuring Openness of Procurement Procedure by Law

Private procurement is when private entity exchanges its own resources for other resources they need. …

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