China will make more efforts to streamline public procurement in green sectors and apply digital supervision technologies to create a fair and transparent market environment, according to a report released by the China Federation of Logistics and Purchasing (CFLP) on Friday.
China's public procurement value reached 46 trillion yuan (about 6.37 trillion U.S. dollars) in 2023, dropping 4.16 percent from the previous year amid insufficient effective demand, said the CFLP report.
Public procurement refers to the process by which public authorities, such as government departments or local authorities, purchase work, goods or services from companies.
China has been encouraging public resource trading platforms at all levels to open designated channels to boost the trading of waste products and equipment assets, said the report.
The transaction volume of charging equipment and tools with new energy technologies has increased exponentially. The purchase volume of air conditioners with first-level energy consumption, the greenest level among China's five-tier energy efficiency index, has increased by 11 percent compared with the same period last year, according to the report.
Digital channels in the public procurement sector are also developing rapidly nationwide, the report said, adding that more than 40 percent of state-owned enterprises (SOEs) have a digital procurement rate of more than 50 percent, with the rate among central SOEs reaching nearly 90 percent.
"The procurement model of SOEs and central SOEs must first meet the requirements of compliance, as well as positive and guaranteed supply, to achieve the corporate procurement purpose of reducing costs and increasing efficiency through digital procurement forms. The purchaser has no contact with the actual supplier, and quotations, performance, and delivery are isolated from each other for transparency. The price is also supervised by social e-commerce platforms to make the price favorable," said Gao Long, executive director of CFLP Public Procurement Branch.
With the popularization of digital review technologies, digital intelligence application scenarios at government-level will also become more abundant, said CFLP officials.
"Digital technologies have been widely used in public procurement, and the pace of interconnection of public procurement platforms nationwide has been significantly accelerated. The improvements of digital governance capabilities of public procurement platforms are good for creating a fair market environment for both purchasers and suppliers.," said Hu Dajian, assistant to the president of the CFLP.