China to offer price edge to local goods in government deals

According to media reports, China plans to give domestically made products a price advantage in government procurement to bolster its supply chains against potential US tariff hikes. According to a draft rule by the Ministry of Finance, "Made in China" goods will be listed 20% cheaper than their actual price when compared with foreign products. The government will still purchase the goods at their full market price.

To qualify, products must meet specific domestic component requirements, and key manufacturing processes must occur in China. This measure aims to support local manufacturers amid fears of a renewed trade war, as well as encourage foreign companies to maintain production in the country.

The policy aligns with Beijing’s push for technology self-reliance and could mitigate the impact of higher US tariffs on exports. It also seeks to stabilize China’s job market by discouraging manufacturers from relocating operations abroad.