Document No. Guo Ban Fa [2025] No. 34
To the people’s governments of all provinces, autonomous regions, and municipalities directly under the Central Government, and all State Council departments and agencies directly under the State Council:
In order to build a unified, open, and competitively orderly government procurement market system, improve the government procurement system, and ensure the equal participation of all types of business entities in government procurement activities, in accordance with the Government Procurement Law of the People’s Republic of China, the Foreign Investment Law of the People’s Republic of China, and other relevant laws and regulations, and with the consent of the State Council, we hereby notify you of the following matters regarding the implementation of standards for domestic products and related policies in government procurement:
I. Standards for Domestic Products
Domestic products shall meet the following conditions:
(1) Produced within the territory of China
Products shall be produced within the territory of China, meaning that the change in attribute from raw materials and components to the finished product is achieved within the customs territory of the People’s Republic of China.
A change in attribute refers to processes such as manufacturing, processing, or assembly that result in a new product entirely different from the raw materials or components, possessing a new name and characteristics (use). A change in attribute does not include the following minor operations:
- Operations carried out to ensure the product remains in a certain state during transportation or storage;
- Packaging or display for the transportation or sale of the product;
- Affixing or printing brands, logos, marks, and other distinguishing symbols on the product or its packaging;
- Simple painting, polishing, and dividing into lots;
- Other circumstances that do not constitute a change in attribute.
(2) The cost ratio of components produced in China reaches the specified proportion
The cost ratio of a product’s components produced within China shall reach the specified proportion. The calculation formula is:
Costs of components produced in China / Total costs of product >= the specified proportion
The Ministry of Finance, in conjunction with relevant industry authorities, shall determine the specified proportion that the cost ratio of components produced in China must reach for different products. Before the implementation of the specific requirements regarding the cost ratio of components produced in China for various products, products meeting the condition stipulated in Article I (1) of this Notice shall be treated as domestic products in government procurement activities.
(3) Key components and key processes of specific products comply with relevant requirements
For specific products, in addition to meeting the conditions in Article I (1) and (2) of this Notice, they shall also comply with the requirements determined by the Ministry of Finance in conjunction with relevant industry authorities regarding the production of their key components and the completion of their key processes within China.
Within 5 years from the effective date of this Notice, the Ministry of Finance, in conjunction with relevant industry authorities, shall, based on fully soliciting opinions from domestic and foreign-invested enterprises, industry associations, chambers of commerce, and other parties, categorize measures and advance steadily, determining the requirements for the cost ratio of components produced in China for different products, as well as the requirements for key components and key processes of specific products. Depending on the development circumstances of different industries, a transition period of 3 to 5 years shall be set when issuing specific product requirements, to gradually establish a standard system for domestic products in government procurement and a dynamic adjustment mechanism.
II. Scope of Application of the Standards for Domestic Products
The standards for domestic products apply to goods, including those involved in government procurement projects for goods and service projects. The goods subject to the standards for domestic products specifically refer to the product categories listed in the Government Procurement Product Classification Catalog, excluding the following: houses and structures; cultural relics and display items; books and archives; special animals and plants; agricultural, forestry, animal husbandry, and fishery products; minerals and mineral substances; electricity, city gas, steam, hot water, water; food, beverage, and tobacco raw materials; and intangible assets.
III. Support Policies for Domestic Products
In government procurement activities where both domestic and non-domestic products participate in the competition, a price review preference shall be given to domestic products according to law. A 20% price deduction shall be applied to the quoted price of domestic products, and the deducted price shall be used in the review.
When a procurement project or procurement lot contains multiple products, and the sum of the costs of the products provided by the supplier for that procurement project or lot that meet the standards for domestic products accounts for 80% or more of the total cost of all products provided by the supplier, a price review preference shall be given according to law to all products provided by that supplier. That is, a 20% price deduction shall be applied to the total quoted price of all products provided by the supplier, and the deducted price shall be used in the review.
IV. Policy Implementation Requirements
(1) Rules for calculating the cost of components produced in China. The cost of a product’s components produced in China shall be calculated according to the “Basic Rules for Calculating the Cost of Components Produced in China” (see Attachment 1).
(2) Relevant documentary proof. The procuring entity or procurement agency shall clearly require in the procurement documents that suppliers provide a “Declaration of Conformity with Standards for Domestic Products” (template see Attachment 2, hereinafter referred to as the “Declaration”) or other relevant documentary proof stipulated by the Ministry of Finance in conjunction with relevant departments for the products they supply. If a Declaration or relevant documentary proof meeting the requirements is provided, the product shall be regarded as a domestic product, and the procuring entity or procurement agency shall not require the supplier to provide other supporting materials. If a supplier provides a false Declaration or false documentary proof to seek the award of a bidding, liability shall be pursued according to the Government Procurement Law of the People’s Republic of China and other laws and regulations.
The procuring entity or procurement agency shall announce the Declaration or relevant documentary proof provided by the winning supplier together with the announcement of the winning bid or result.
(3) Equal treatment for all types of business entities. State-owned enterprises, private enterprises, foreign-invested enterprises, and other types of business entities shall equally enjoy the government procurement support policies for domestic products. Procuring entities and procurement agencies must treat all types of business entities equally and without discrimination in matters such as the release of government procurement information, determination of supplier qualification criteria and supplier qualification check, and review standards, effectively ensuring fair competition among all types of business entities. All regions and departments shall strengthen overall planning and coordination, shall not introduce policy measures that violate this Notice, shall not designate brands or restrict brand registration location or ownership in government procurement activities, and shall not apply differential or discriminatory treatment to suppliers based on ownership type, organizational form, equity structure, investor nationality, or other unreasonable conditions.
(4) If international treaties or agreements concluded or jointly participated in by the People’s Republic of China contain different provisions regarding policies for domestic products in government procurement, those treaties or agreements shall prevail.
V. Dispute Resolution
The handling of disputes related to the standards for domestic products by Official Finance Departments during the processing of government procurement complaints, supervision, and inspections shall be carried out in accordance with relevant government procurement laws, regulations, and provisions. When necessary, relevant departments or professional institutions shall verify the relevant matters. All relevant departments, professional institutions, and their staff have a duty of confidentiality regarding trade secrets learned during the handling of government procurement complaints, supervision, and inspections.
(1) During the handling of government procurement complaints, supervision, and inspections, disputes over whether a product or component is produced in China shall be handled according to the following principles:
- For assembled products or components, the relevant supplier and manufacturer shall provide procurement contracts for the product or components, records of incoming goods, manufacturing, processing, assembly records, and other supporting materials. If the aforementioned materials can prove that the product or component is produced in China, the relevant product or component shall be deemed produced in China.
- For products or components directly manufactured or processed from raw materials, such as steel, ceramics, glass, etc., the relevant supplier and manufacturer shall provide information such as the production site legally marked on the product or component packaging. If the production site is located within the customs territory of the People’s Republic of China, the relevant product or component shall be deemed produced in China.
(2) During the handling of government procurement complaints, supervision, and inspections, disputes over whether the cost ratio of a product’s components produced in China or the cost ratio of domestic products in a procurement project or lot reaches the specified proportion shall be resolved by the relevant supplier and manufacturer providing accounting data, procurement contracts, records of incoming goods, etc., for the components or products. The Official Finance Department shall make a determination according to the relevant rules for calculating the cost of components produced in China.
(3) During the handling of government procurement complaints, supervision, and inspections, disputes over whether the key components of a specific product are produced in China shall be handled according to the principles stipulated in Article V (1) of this Notice; disputes over whether the key processes of a specific product are completed in China shall be resolved by the relevant supplier and manufacturer providing records and other materials proving that the key processes were completed in China.
During the handling of government procurement complaints, supervision, and inspections, if the relevant supplier or manufacturer fails to provide supporting materials as required above, or if the materials provided are insufficient to prove that the product conforms to the standards for domestic products, the product shall not enjoy the government procurement support policies for domestic products. If this affects or may affect the procurement result, the Official Finance Department shall handle the matter according to relevant government procurement laws and regulations.
This Notice shall take effect on January 1, 2026.
Attachments:
- Basic Rules for Calculating the Cost of Components Produced in China
- Declaration of Conformity with Standards for Domestic Products
General Office of the State Council
September 28, 2025
(This document is publicly released)
Attachment 1
Basic Rules for Calculating the Cost of Components Produced in China
The cost of a product’s components produced in China is generally calculated based on the relevant costs of its secondary components. If calculating based on the product’s primary components can meet the needs for determining the cost of components produced in China, the relevant costs of the primary components may be used for calculation.
- A primary component of a product refers to a component that directly constitutes the product. A secondary component of a product refers to a component that directly constitutes a primary component of the product. If a primary component cannot be decomposed, it is regarded as a secondary component.
- If a secondary component is produced in China, its entire cost is included in the cost of components produced in China; if a secondary component is not produced in China, its cost is not included in the cost of components produced in China.
- The total product cost and component costs shall be calculated based on relevant accounting data, procurement contracts, records of incoming goods, etc.
- Other related matters requiring further clarification of the cost calculation rules shall be separately stipulated by the Ministry of Finance in conjunction with relevant departments.
Attachment 2
Declaration of Conformity with Standards for Domestic Products
This company (unit) solemnly declares that, according to the provisions of the “Notice of the General Office of the State Council on Implementing the Standards for Domestic Products and Related Policies in Government Procurement” (Document No. Guo Ban Fa [2025] No. 34), the following products supplied by this company (unit) qualify as domestic products. The specific details are as follows:
(Product Name 1)1, manufactured by (Factory Name)2, factory address (Factory Address). The cost ratio of components produced in China for (Product Name 1) is ≥ (Specified Proportion)3. The (Key Component(s))4 of (Product Name 1) is/are produced in China. The (Key Process(es))5 of (Product Name 1) is/are completed in China.
(Product Name 2), manufactured by (Factory Name), factory address (Factory Address). The cost ratio of components produced in China for (Product Name 2) is ≥ (Specified Proportion). The (Key Component(s)) of (Product Name 2) is/are produced in China. The (Key Process(es)) of (Product Name 2) is/are completed in China.
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This company (unit) takes responsibility for the authenticity of the above declaration. If false, we are willing to bear corresponding legal responsibility.
Company (Unit) Name (Seal):
Date: Year Month Day
1 If the product has a model number, please include it in the “Product Name” field.
2 The factory name and address should be consistent with the relevant information stated on the manufacturer’s business license.
3 Before the implementation of the relevant requirements for the cost ratio of components produced in China for this product, the “Specified Proportion” field may be left blank. The same applies below.
4 Before the implementation of the key component requirements for this product, the “Key Component(s)” field may be left blank. The same applies below.
5 Before the implementation of the key process requirements for this product, the “Key Process(es)” field may be left blank. The same applies below.