Chinese Government Procurement Hit RMB 32.8 Billion Yuan

Last year saw China's government procurement reached RMB 32.8 billion yuan, indicating a saving of RMB 5.25 billion yuan. The amount only accounts for around two percent of the government financial expenditure, showing a great potential of China's purchasing power to manoeuvre.

According to the data provided by the Ministry of Finance, recent years have witnessed a great increase in China's government purchasing capital, showing a favorable tendency since the trial operation of the system in 1995 and the rate of economized capital has been up to 11 to 13 percent. Regarding the structure of the purchasing items in 2000, the government procurement focused on general goods, accounting for 67 percent, followed by the purchasing for project engineering and service industries. With regard to the articles bought, the majority is the large, commonly used commodities, such as cars, computers and copying machines. Last year China purchased 39,500 cars and 212.000 computers, accounting for 20% of the total purchasing capital.

By PD Online Staff Yang Ruoqian

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