Lobby Letter to Guangdong Governor Ma Xingrui Concerning the Buy China Policy

2020-09-15 | South China

The South China Chapter submitted a lobby letter to Guangdong Governor, Ma Xingrui, to advocate on behalf of our South China Healthcare members concerning the Buy China Policy.

Recently, the Health Commission of Guangdong Province published Letter of the Guangdong Provincial Health Commission on the Opinions of the Committee on Proposal No. 20200567 of the third Session of the 12th Guangdong Provincial Committee of the CPPCC, which brought to the Chamber’s attention the effect the “Buy China” policy would have on public hospitals. In response to the “Buy China” initiative, Guangdong has been taking measures to restrict local hospital’s access to foreign medical equipment and encouraging them to buy domestic branded equipment.

Articles 9 and 16 of the Foreign Investment Law state that foreign-invested enterprises (FIEs) in China enjoy access to the same preferential policies as other companies, and that they will receive equal treatment in government procurement activities, including with respect to products manufactured in China by FIEs. Additionally, Article 1 of the Notice on Promoting Fair Competition and Improving the Environment of Government Procurement, issued by the Ministry of Finance (MOF) on 30^th July 2019, states that FIEs will receive equal treatment in government procurement activities.[1] However, many local procurement policies include a provision that hospitals are encouraged to buy domestically-made medical devices as long as they meet quality requirements, and either explicitly or in practice stipulate the purchase of ‘domestic brands’. First, the requirement to purchase ‘domestic brand’ medical equipment violates the principle of fair competition and equal treatment of registered companies in China. Second, the allocation and use of medical equipment and instruments in public hospitals should be based on open market competition, the needs of medical service providers and the ensuring the best clinical outcomes for patients, instead of focussing solely on the origin of the brand. This issue has been brought to the attention of the Ministry of Commerce and CCPIT. All efforts made by the Guangdong government to create a fair, open and transparent competitive environment and market access conditions for all market players in China would be welcomed.

The letter was signed by European Chamber President, Joerg Wuttke, and was received by the office of Governor Ma Xingrui.