Official Press Release
REVIEW | How China's New Procurement Rules Are Reshaping Market Access
China's new government procurement framework is officially here, bringing new criteria for what qualifies as "domestic-made" and unlocking significant competitive advantages in public tenders. These shifts will ripple across a wide range of sectorsโfrom healthcare, pharma, and research to environmental tech, infrastructure, and industrial equipment.
To help business leaders navigate this new landscape, the SwissCham Legal Committee hosted a highly engaging session at DIALOGS on Friday, July 3. We dove deep into the practical implications for foreign companies operating in China, explored the evolving role of localization and value-added manufacturing, and discussed actionable strategies for preparing as product-specific standards roll out in the coming years.
The event kicked off with a thought-provoking presentation by Nicolas Musy, Founding Partner at China Integrated, who unpacked the real-world impact of China's new "Domestic-Made" requirements on Swiss companies. Nicolas anchored his talk in a case study of a Swiss medical equipment manufacturer facing a tough market reality: despite a strong history in China, the company struggled to compete as local rivals began successfully replicating their technology.
From there, Nicolas dissected the specifics of the new "Notice" regarding China's Procurement Law, moving beyond the legal text to explain what this actually means for international businesses on the ground. He concluded with several critical takeaways for Swiss and international companies to consider:
- The Innovation Gap is Closing: The rise in quality and innovation among Chinese competitors is exactly what makes these strict localization requirements politically and practically possible today.
- Price is King: While regulations matter, the low pricing of local competitors is often the deciding factor. The new Notice will only make this price advantage even more prominent in public tenders.
- The Clock is Ticking on Assembly: Currently, assembling products in China remains a viable path to meeting "domestic-made" criteria. However, as specific standards are issued over time, the bar will likely be raised, requiring deeper levels of local production.
During the discussion, Nicolas, Xiangjun Kong, Senior Partner at Hui Ye Law Firm, and Andrea Sorgato, Managing Partner at HEALTHLAWASIA, shared their insights on how to navigate this complex transition. They explored the critical standards for deciding when localization is necessary and the compliance risks companies face if they rely solely on assembly once detailed standards are released. The conversation also balanced the need for IP protection with local supply chain cooperation, specifically addressing the unique challenges NMPA-regulated medical devices face compared to general industrial equipment.
Furthermore, the panelists discussed how foreign brands can build differentiated competitiveness against rising Chinese innovators, looking beyond production to find market niches that avoid pure price wars. They concluded by addressing the internal corporate challenges, offering strategies to align global headquarters with local teams and determining which localization models best fit different types of foreign companies for long-term success.
SwissCham extends its gratitude to our speaker and panelists, the Legal Committee, and all participants for contributing to the success of this event. We look forward to hosting more initiatives that explore the challenges and opportunities in operating business in China, helping our community stay informed and engaged with the latest developments in the global market.
