Policy Snapshots
Navigating China's ever-evolving regulatory landscape can be challenging, which is why we provide valuable insights that help contextualize policy changes. The Policy Snapshot is a bi-weekly briefing on the latest Chinese policies for German companies in China. The Policy Snapshot is shared on the WeChat Channels of the German Chamber and can also be accessed on this site. As a member of the German Chamber, you can also benefit from our more comprehensive report, the Policy Barometer, which is delivered straight to your inbox.
Policy Snapshot - Recent National and Regional Policies in China (2024/12/11)
Domestic Product Standards in Government Procurement
The Ministry of Finance (MOF) released the Notice on Issues Concerning Domestic Product Standards and Implementation Policies in the Field of Government Procurement (Draft for Comments). The Notice defines what constitutes domestic products and outlines the policy support for domestic products in public procurement. Where both domestic and non-domestic products compete, the price of domestic products will be discounted by 20% as part of the evaluation criteria during the tendering process.
Our take: The Notice aims to establish an open, unified government procurement market where all types of companies, including German companies in China, can participate equally. However, the draft puts non-localized companies at a disadvantage. We are currently preparing our comments for submission to the MoF for more clarification.
Call for Comments: Product Standards in Government Procurement
Business Confidence Survey 2024/2025.pdf - Zoho WorkDrive
Accounting and Reporting of GHG Emissions in the Steel Industry
The General Office of the Ministry of Ecology and Environment (MEE) released drafts for "Guidelines for Accounting and Reporting of Greenhouse Gas (GHG) Emissions by Enterprises (Steel Industry)" and "Technical Guidelines for Verification of GHG Emissions by Enterprises (Steel Industry)." These guidelines are set to provide detailed requirements for GHG emissions accounting and reporting for companies in the steel industry, including formulas for calculating emissions, as well as data monitoring and acquisition requirements for key parameters.
Our take: The two drafts establish a framework for the accounting and reporting of GHG emissions in the steel industry, which is a significant step towards a broader Carbon Emissions Scheme and towards the alignment of the steel industry with international standards (e.g., CBAM), thereby promoting China's foreign trade in the steel sector.
Top-Level Guiding Opinions on Smart Urban Infrastructure
The State Council and the Party Central Committee issued Opinions on Promoting “New-Type” Urban Infrastructure and Building “Resilient” Cities. The Opinions aim to establish a group of new cities with safer, more orderly, smarter, and more efficient urban operations by 2030. Major tasks include building and upgrading intelligent municipal infrastructure, promoting the coordinated development of smart city infrastructure and intelligent connected vehicles (ICVs), and developing smart residential quarters.
Our take: Since 2020, the Chinese authorities have been piloting smart urban infrastructure upgrades. This central-level guidance takes a further step by now promoting digitalized and intelligent urban infrastructure nationwide. German companies that can provide smart and green solutions and infrastructure upgrades might benefit from this initiative.