One of the Fundamental Issues in China's Bidding: The Expansion of Bidding
As long as you take another small step, as if you are taking a small step in the same direction, the truth will become a mistake. - Lenin
Tendering is widely recognized as a method of procurement, an organized market trading act, and a means of buying goods, works, and services. It is a process through which bidders choose the most suitable and reasonable supplier, contractor, or service provider. However, in China, the concept of bidding has expanded beyond its original purpose. It has become not only a procurement method but also a tool for government administration. This transformation has led to several problematic phenomena.
First, various administrative departments compete for control over the bidding process, leading to overlapping regulations and confusion among bidders. The "Tendering and Bidding Law" is often ignored in favor of other conflicting laws and regulations, creating inconsistency and uncertainty in the system.
Second, there is a tendency to require open tendering in all cases, even when it may not be the most appropriate method. Open bidding can be time-consuming and costly, and it should be used only after a thorough evaluation of its necessity.
Third, the abuse of open tendering has eroded trust in the bidding process. Bidders no longer see it as a fair and beneficial opportunity, but rather as a forced obligation. This shift has led to a decline in the integrity and effectiveness of the bidding system.
Another major issue is the misconception that bidding is a weapon against commercial bribery and corruption. While this belief may seem logical, it has led to complacency and even created opportunities for corruption. Bidding has become an excuse for avoiding accountability, rather than a genuine solution to the problem.
In reality, bidding is just a procurement method. It cannot solve all problems, especially those rooted in systemic issues. The focus should be on improving transparency, fairness, and accountability, rather than placing excessive expectations on the bidding process itself.
The Second Fundamental Problem in China's Bidding: Separation of Investment and Decision-Making
Further establish the status of the investment subject of the enterprise, who will invest, who will make decisions, who will benefit, and who will bear the risks. - Decision of the Third Plenary Session of the 16th CPC Central Committee
A critical issue in China’s bidding system is the separation between investment and decision-making. In many cases, the investor (the tenderer) is deprived of the right to make key decisions during the bidding process. This misalignment undermines the principles of enterprise autonomy and risk responsibility.
According to the "Decision of the State Council on Investment System Reform," enterprises should have the right to make investment decisions based on the principle of "who invests, who makes decisions, who benefits, and who bears the risks." However, in practice, the decision-making power is often transferred to the bid evaluation committee, which is not legally authorized to do so.
This situation leads to a lack of accountability. If the bidder cannot make decisions, they may avoid risks, while the tenderer may not be fully responsible for the outcomes. To address this, the legal framework must ensure that the tenderer retains the right to determine the winning bidder, with clear guidelines on how this authority should be exercised.
Additionally, the bid evaluation committee should not be given unlimited power. Its role is to evaluate bids and recommend candidates, not to make final decisions. The legal system must clarify the responsibilities of each party involved to prevent misuse of power and ensure fairness.
To restore balance, the three pillars of the bidding process—tenderee, bid evaluation committee, and administrative supervision—should work together with clearly defined roles and mutual checks. This approach would promote transparency, reduce conflicts, and ensure that the bidding process serves its intended purpose.
Finally, it is essential to return the decision-making power to the tenderee, as outlined in the "Tendering and Bidding Law." Only then can bidding become a voluntary and effective procurement method, contributing to the healthy development of China’s economy.
Don't take the bean bag improper dry food
Don't take improper bidding
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