Fair treatment for China govt contracts

CHINA'S vice president yesterday vowed foreign firms would get a fair chance to secure government contracts, amid mounting concerns that Beijing is skewing the business playing field against outsiders.

The comments from Xi Jinping, who is tipped to succeed President Hu Jintao in 2013, come after a string of complaints from US and European business leaders about their ability to do business in the world's number two economy.

"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 said.

He also told a forum in the southeastern city of Xiamen, a speech carried on state television, that China was taking "a serious and responsible attitude" in talks to join the World Trade Organisation's Government Procurement Agreement.

The agreement, known as the GPA, regulates trade in public-sector purchases. Western nations are keen for China to join as its accession would open up its multi-billion-dollar state contracts market to foreign bidders.

China has regularly been criticised for not allowing foreign companies access to large government-backed projects.

Beijing in July submitted a revised offer to join the GPA, which deputy US trade representative Demetrios Marantis said included "significant improvements". The next talks on China's GPA bid are due in October, according to Chinese state media.

Last week, the European Union Chamber of Commerce said uneven enforcement of laws and unfair restrictions on foreign investment were deterring overseas companies from expanding their operations in China.

Surveys by the American and EU chambers of commerce in recent months showed overseas companies are increasingly unhappy with the way they are treated in China. Beijing last month urged officials to implement policies aimed at encouraging foreign investment. AFP