SOE purchase reform set to spur SMEs

An employee oversees a robot arm operating on the production line of a turbine manufacturer in Harbin, Heilongjiang province. The State-owned Assets Supervision and Administration Commission of the State Council, China's top State assets regulator, and the National Development and Reform Commission, the country's top economic regulator, recently issued a guideline on regulating central SOEs' procurement activities to build a transparent and efficient supply chain. It also enhances regulations on how central SOEs can support technological innovation through procurement, encouraging them to take the lead in adopting innovative products in key areas such as satellite navigation, chips, high-end machine tools, industrial robots and advanced medical equipment. Ding Rijia, a professor specializing in industrial economy at the China University of Mining and Technology in Beijing, said that the new policies can help central SOEs use the funds wisely, minimize illegal risks and ensure that procurement processes are open and fair. Speaking at a news conference in Beijing on Wednesday, Chen Bin, deputy director of the expert committee at the Beijing-based China Machinery Industry Federation, said that adopting cutting-edge technologies and products also allows central SOEs to maintain and reinforce their competitiveness in the global market.