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Japanese firms call on China not to exclude foreign firms from gov’t procurement

  • September 17, 2020
  • , Nikkei , p. 15
  • JMH Translation

By Iori Kawate

 

BEIJING – On Sept. 16, the Japanese Chamber of Commerce and Industry in China, which is made up of Japanese firms operating in China, finalized a letter of recommendations calling on the Chinese government to improve the investment and business environments there. The letter argues that there have been many cases in which Japanese firms have failed to win orders for Chinese government procurement because they are foreign companies. The chamber is calling on the Chinese government to set clear standards to prevent foreign companies from being easily excluded.

 

The Chinese government reportedly has lists of companies and products that it is encouraged to use when procuring services and products, but the lists are not made available to the public. Those lists include personal computers and multifunctional devices for which Japanese manufacturers command a strong market share.

 

The chamber of commerce and industry demanded that the Chinese government “clarify the existence of such lists and set criteria as well as the requirements for products to be included in the lists.”

 

In particular, there are no clear guidelines for government procurement of information security products. The letter points out that this “effectively makes it difficult for foreign firms to enter the market.” The chamber demanded improvements, saying that “excluding products with high security functions is unreasonable discrimination.” (Abridged)

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