On June 23, 2026, China’s National People’s Congress gave its first reading to simultaneous amendments to the Government Procurement Law and the Bidding Law — the first time both laws have been revised together in over 20 years. Here is what the unified procurement framework means for foreign companies competing for China’s 4 trillion RMB public procurement market.
Why It Matters
China’s government procurement market is worth an estimated 4 trillion RMB (approximately $550 billion) annually, making it one of the world’s largest public procurement markets. For foreign businesses, access to this market has historically been complicated by overlapping legal regimes, inconsistent standards, and procedural opacity. The 2026 simultaneous revision of both the Government Procurement Law and the Bidding Law — the first time since these laws took effect over two decades ago — signals a meaningful attempt to address these barriers.
On June 23–26, 2026, the Standing Committee of the National People’s Congress gave its first reading to amendments to both laws. The goal is to draw a clearer line between the two regulatory regimes and unify rules across the full project lifecycle — from approval through to payment. For foreign-invested enterprises (FIEs) bidding on infrastructure, technology, and services contracts in China, this could mean fewer compliance surprises and a more level playing field.
The Details
The NPC’s 2026 Legislative Work Plan, released on May 12, covers over 40 legislative items. Beyond procurement reform, the agenda includes amendments to the Trademark Law (passed June 26), the Tax Collection and Administration Law, the Bankruptcy Law, and financial regulation packages. But the procurement overhaul has the most immediate foreign-investor relevance.
Under the current system, the Ministry of Finance (MOF) oversees government procurement while the National Development and Reform Commission (NDRC) oversees tendering and bidding. This dual-track system has created friction: overlapping scope, inconsistent standards, and conflicting procedural requirements that force bidders to navigate two parallel frameworks. The draft amendments aim to resolve this by unifying rules and introducing a clarification mechanism for abnormally low bids — requiring bidders to justify pricing that could jeopardize contract performance.
The amendments also give procuring entities more flexibility to choose procurement methods suited to individual projects, rather than being locked into rigid procedures. This flexibility could benefit foreign suppliers offering specialized equipment or services that don’t fit standard tender categories.
2026 marks the final year of China’s three-year government procurement rectification campaign, which began in 2023 to address discriminatory practices favoring domestic enterprises. The simultaneous legal revision suggests the government intends to codify some of these anti-discrimination measures into permanent law — a positive signal for foreign bidders.
Comparative context: For reference, the U.S. federal procurement market was worth approximately $714 billion in fiscal 2025, while the EU’s public procurement market is estimated at €2 trillion annually. China’s 4 trillion RMB ($550 billion) market, while smaller than the EU’s, is growing faster — government procurement spending increased by an estimated 8% year-on-year in 2025 versus 3% for the EU. The sectors with the highest foreign participation potential are medical equipment (where foreign brands hold 30% of the high-end market), environmental technology services, and IT infrastructure — all areas where Chinese SOEs have historically received preferential treatment under the old procurement framework. If the unified procurement rules reduce the current 2% foreign-win rate to even 5%, that would represent approximately $27 billion in new addressable revenue for foreign-invested enterprises annually.
Timeline to watch: The NPC Standing Committee typically schedules its second reading of priority legislation within 3–6 months of the first reading. A second reading in Q4 2026 would set up final passage in H1 2027, with implementation likely 6–12 months after enactment. That means the earliest operational changes could take effect in mid-2028 — giving foreign businesses roughly two years to prepare their compliance infrastructure for the unified regime.
What You Should Do
- Review your China procurement pipeline. If your company bids on infrastructure, technology, or government services contracts in China, identify which contracts fall under the Government Procurement Law versus the Bidding Law — the boundary will shift once the amendments take effect.
- Prepare for unified standards. The draft signals that a single compliance framework may eventually replace the current dual-track system. Build internal capacity for the unified rules rather than maintaining separate processes for each regime.
- Monitor the second reading. The NPC typically schedules two to three readings before final passage. Timing for the second reading has not been announced, but given the priority status of procurement reform in the 2026 agenda, passage is expected within 12 months.
- Engage through chambers of commerce. The American Chamber of Commerce in China and the European Chamber have both submitted detailed comments on the procurement regime. Coordinate with these organizations to ensure your sector’s concerns are represented.
One Data Point
The number to remember: 4 trillion RMB — that’s the estimated annual size of China’s government procurement market. With the Bidding Law alone covering approximately 3.5 trillion RMB in construction contracts and the Government Procurement Law covering an additional 500 billion RMB in goods and services, even marginal improvements in foreign access represent significant revenue opportunities. Currently, foreign-invested enterprises win less than 2% of government procurement contracts by value, according to European Chamber estimates — a share that could grow if the reforms deliver on their promise of equal treatment.
— China Gateway 360 —
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