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Article: Challenges in Designing Public Procurement Linkages: The Case Study of SMEs Preference in China’s Government Procurement

TitleChallenges in Designing Public Procurement Linkages: The Case Study of SMEs Preference in China’s Government Procurement
Authors
KeywordsGovernment Procurement
Public Procurement
Procurement Linkages
SMEs
Preferential Policies in Procurement
China
Issue Date2013
PublisherUniversity of California School of Law.
Citation
UCLA Pacific Basin Law Journal, 2013, v. 30, p. 149-200 How to Cite?
AbstractPreferential treatment in government procurement, also known as procurement linkages, is a con-troversial yet popular tool to achieve socio-economic goals, most importantly, affirmative action for certain targeted groups. This Article utilizes the recently enacted small-medium enterprise (“SME”) procurement linkages in China to examine the pitfalls in the design of procurement linkages. Two major deficiencies of the Chinese regime impede effective implementation of procurement linkages. First, loopholes in the Chinese regulatory regime allow large enterprises to usurp the benefits meant for SMEs through the use of wholly owned subsidiaries and other corporate arrangements. Second, aggrieved suppliers face stringent procedural requirements and limited civil remedies in their attempts to enforce procurement linkages, while the government procuring authority has a perverse incentive to overlook and even acquiesce in the violations. This Article argues that these deficiencies reflect the mistaken assumption that procurement linkages should be treated as simply a conventional type of government procurement. Effective reform would have to go beyond strengthening the enforcement mechanisms for conventional government procurement and entails specific legislative action to tackle the particular requirements of the preferential policies.
Persistent Identifierhttp://hdl.handle.net/10722/184526
ISSN
SSRN

 

DC FieldValueLanguage
dc.contributor.authorChen, Jen_US
dc.date.accessioned2013-07-15T09:53:21Z-
dc.date.available2013-07-15T09:53:21Z-
dc.date.issued2013en_US
dc.identifier.citationUCLA Pacific Basin Law Journal, 2013, v. 30, p. 149-200en_US
dc.identifier.issn0884-0768-
dc.identifier.urihttp://hdl.handle.net/10722/184526-
dc.description.abstractPreferential treatment in government procurement, also known as procurement linkages, is a con-troversial yet popular tool to achieve socio-economic goals, most importantly, affirmative action for certain targeted groups. This Article utilizes the recently enacted small-medium enterprise (“SME”) procurement linkages in China to examine the pitfalls in the design of procurement linkages. Two major deficiencies of the Chinese regime impede effective implementation of procurement linkages. First, loopholes in the Chinese regulatory regime allow large enterprises to usurp the benefits meant for SMEs through the use of wholly owned subsidiaries and other corporate arrangements. Second, aggrieved suppliers face stringent procedural requirements and limited civil remedies in their attempts to enforce procurement linkages, while the government procuring authority has a perverse incentive to overlook and even acquiesce in the violations. This Article argues that these deficiencies reflect the mistaken assumption that procurement linkages should be treated as simply a conventional type of government procurement. Effective reform would have to go beyond strengthening the enforcement mechanisms for conventional government procurement and entails specific legislative action to tackle the particular requirements of the preferential policies.-
dc.languageengen_US
dc.publisherUniversity of California School of Law.en_US
dc.relation.ispartofUCLA Pacific Basin Law Journalen_US
dc.rightsCreative Commons: Attribution 3.0 Hong Kong License-
dc.subjectGovernment Procurement-
dc.subjectPublic Procurement-
dc.subjectProcurement Linkages-
dc.subjectSMEs-
dc.subjectPreferential Policies in Procurement-
dc.subjectChina-
dc.titleChallenges in Designing Public Procurement Linkages: The Case Study of SMEs Preference in China’s Government Procurementen_US
dc.typeArticleen_US
dc.identifier.emailChen, J: jianlin@hku.hken_US
dc.identifier.authorityChen, J=rp01530en_US
dc.description.naturepostprint-
dc.identifier.hkuros215605en_US
dc.identifier.volume30en_US
dc.identifier.spage149-
dc.identifier.epage200-
dc.publisher.placeUnited States-
dc.identifier.ssrn2367677-
dc.identifier.hkulrp2013/041-

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