Study Of China's Government Procurement System

Government Procurement System, which is an advanced expenditure engagement system of governments, has existed for over 200 years in market economy states. With the implementation of Procurement Agreements signed by the member states of WTO in 1994 and the Demonstration Law of Cargoes, Projects and Services Purchasing passed by U.N Committee of Trade Laws, Procurement of developed countries of market economy evolved towards standardization and internationalization further. Purchasing size is becoming more and more large, and purchasing process is becoming more and more transparent. Government Procurement has been the basic system of governments of many countries, including developing countries, to manage public disburse, to control economic run and to maintain interests of their own state and public and society. Significances and purposes of practicing Procurement are as below: to improve the benefits of the expending of state finance, to economize the expenditure of purchasing, to ensure the quality of the purchased, to exert macro-control of the government on the run of the national economy, and to restrain corruption effectively. In a long period of planned economy system of China, the management of government disburse was mainly in the form of obdurate purchasing and decentralization purchasing. Since the Third Plenary Meeting of the Central Committee of the 11th Session, with the development of the reform and openness policy in China, especially with the establishment of the aim to set up the socialist market economy system, a new Procurement system began to be adopted in 1996 in China. Government Procurement system of China may appear a little late, and its size is small, however, the works of making experiments proceed effectively with close attentions to it by administrations 0f all levels as well as by the departments involved. The rules and regulations are coming to be bettered, and the capital used for Procurement rises in a large amount every year, which indicate a good tendency of its development. With the socialist market economy system being to be perfected, and with the farther transition of the government functions, the number of Government Procurement of China will increase continuously, and Government Procurement will play a more and more large role in the life of politics, economy and society in China. The paper combines the practices of international and domestic Procurement to present in full view the historical evolution, the principles, the objectives, the modes and the evolving trend of Government Procurement system, while the significance of Procurement in the process of socialist modernization construction, of modern government construction, and of anti-corruption and pro-probity is also discussed in it. The paper emphatically studies the system of building Government Procurement of being fit the situation of China and the socialist market economy system. Further the paper puts forward the basic frame of Government Procurement system on the basis of summarizing the practice of China and the international experience, and discusses the market competition, regulatory regime, enforcement regime, supervision and restraint regime. The paper not only makes rational studies of Government Procurement system, but also observes the practices of Procurement in China to analyze in detail the operational procedures, links and methods in the process of Government Procurement, on the basis of which I hope to provide a manageable guidance. The paper discusses the new topic of China how to make Procurement gear to the international mode after the entry into WTO of China under globalization, in order to grope for a mode of Government Procurement, which may both, fit the situation of China, and gear to the general international convention. And this may establish a good theoretical foundation for Government Procurement to be institutionalized, normalized and legalized.