Jiaxing, a city in China, is taking innovative measures to standardize state-owned enterprise procurement and strengthen its defense against corruption. The Jiaxing Municipal State-owned Assets Supervision and Administration Commission, along with five other departments, recently issued the “Jiaxing Municipal State-owned Enterprise Procurement Management Implementation Measures (Trial)”, which aims to establish a unified procurement management system for municipal state-owned enterprises.
This new system clarifies the procurement code of conduct for state-owned enterprises and classifies procurement into three types: paid goods, projects, and services. Further categorization is done based on the purchase amount, resulting in five categories such as engineering projects, production and operation materials, and non-production and operation materials and services. With this classification, the method ensures that the procurement behavior of state-owned enterprises adheres to full-process management and full-field coverage. To strengthen supplier and expert management, the method also introduces a blacklist system.
This initiative comes in response to the procurement problems exposed by state-owned enterprises earlier this year and the rectification requirements of the provincial party committee inspections. The Jiaxing Municipal State-owned Assets Supervision and Administration Commission has prioritized the reform of state-owned enterprises in procurement and integrated various scattered procurement management methods from different enterprises. The experience and practices of other cities like Shenzhen, Hangzhou, and Huzhou have been taken into account while implementing these new measures.
In addition to the new procurement management system, Jiaxing is also utilizing digital technology to enhance procurement processes. The Jiaxing Municipal Property Rights Company has developed the “Hecai Lian” comprehensive procurement service platform, which was officially launched online on September 26. This platform aims to provide state-owned enterprises with procurement services and enable full-process online transactions for goods, services, and engineering projects below a certain quota. Through digital standardization and innovation, the platform ensures transparency, reduces transaction costs, and strengthens supervision and management throughout the procurement process.
By transitioning state-owned enterprise procurement to the “Hecai Lian” platform, Jiaxing is embracing the concept of “Internet + Procurement” and breaking spatial and geographical restrictions. The platform enables procurement traces, information disclosure, process traceability, and visual management, creating an open, transparent, and efficient transaction environment for municipal state-owned enterprises. This move marks a new journey for Jiaxing’s state-owned enterprises and contributes to their high-quality development.
Overall, Jiaxing’s “three innovations” in state-owned enterprise procurement aim to combat corruption, ensure transparent and efficient transactions, and build a strong defense line for clean procurement. Through these measures, the city is taking a proactive stance in improving its state-owned enterprises and promoting their healthy and sustainable development.