By Gao Taishan, Enterprise Research Institute, DRC

Research Report, No.367, 2021 (Total 6432) 2021-12-3

Abstract: The optimization of business environment regarding engineering bidding and tendering projects is one of the major tasks for thoroughly implementing the guidelines of the CPC Central Committee and the State Council, aiming to foster a market environment with high efficiency, standardization and fair competition. In recent years, authorities in various places and relevant government departments have conducted special rectifications on business environment by comprehensively sorting out laws and regulations and policy documents concerning project bidding and tendering, and making inspections to address violations of laws and regulations which undermine fair market competition. Owing to these efforts, a number of major issues have been effectively solved in response to the concerns of enterprises, and the competition environment has been notably improved with enhanced openness and transparency, refined regulation and market order. In view of the expectations of most market entities, business environment of project bidding and tendering needs to be further improved to break through the blocking points. Problems such as local protectionism, ownership discrimination, and bidding evaluation malpractice still exist, and the relatively high performance costs of project tendering and the unsound credit system have resulted in the weakness of ongoing and ex-post supervision. In light of these issues, this paper suggests that work be done to continuously push ahead with the reform of project bidding and tendering to promote the regulated and orderly development of project bidding and tendering by further fleshing out relevant rules and regulations and policies, and enhancing the comprehensive coverage of electronic bidding and tendering system in a standardized fashion. Beside, efforts are needed to establish and improve credit supervision system to reduce the cost of enterprises bidding performance.

Keywords: business environment, project bidding and tendering credit system, supervision mechanism