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China to open up access to government contracts

Xi Jinping, China's vice president, has denied that recent legislative changes have unfairly favoured domestic firms and pledged to offer foreign companies a fair chance to win national procurement contracts.

The comments came after Beijing was hit by a storm of controversy from global business leaders claiming that the Chinese government was attempting to freeze out non-domestic companies.

"With regard to government purchases and construction projects, the Chinese government will adopt an open, transparent plan to let foreign companies and technological products enjoy equal treatment," Xi told AFP.

He added that China was taking "a serious and responsible attitude" in talks to join the World Trade Organisation's Government Procurement Agreement.

The agreement regulates trade in public-sector purchasing and western nations are adamant that China should join as it would open up multi-billion-dollar state contracts to foreign bidders. In July, Beijing submitted a revised offer to join the GPA which deputy US trade representative Demetrios Marantis said included significant improvements. The next round of negotiations concerning China's GPA bid are expected to kick off in October.

Last week, AFP reported that the European Union Chamber of Commerce said "uneven enforcement of laws and unfair restrictions on foreign investment" were acting as a brake on foreign investment in China.