On The Supervisory Mechanism For Governmental Purchasing In China

Governmental purchasing system is the fundamental system and essential means of Public finance expense, economic transaction regulation, and domestic interests' maintenance. The system, which was derived from developed countries, is prevailing among developing countries. Chinese government launched the system on a trial basis in 1996. With the implementation of The Government Procurement Law of the People's Republic of China.in 2003, and the expansion of governmental purchasing scale, the system is playing a significant role not only in economy, but also in politics and society in China now. The governmental purchasing system, conforming to the international standards, is the most effective and direct procedure for fiscal-fund saving. However, due to the absent supporting legislations and insufficient examples and experiences, operational and supervisory problems have been exposed during the implementation. Since the absence of the supervisory system of governmental purchasing has induced serious illegal activities, strengthen supervision becomes a fundamental key and prerequisite for a successful governmental purchasing system. This paper describes the status quo of the supervisory system of Chinese governmental purchasing, addresses its problems and weaknesses, elaborates causes of these problems, and recommends how to complete relevant legislation, clarify responsibility and regulate governmental and local governmental activities in order to achieve a highly efficient supervisory system of governmental purchasing.