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Article: Challenges in Designing Public Procurement Linkages: The Case Study of SMEs Preference in China’s Government Procurement
Title | Challenges in Designing Public Procurement Linkages: The Case Study of SMEs Preference in China’s Government Procurement |
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Authors | |
Keywords | Government Procurement Public Procurement Procurement Linkages SMEs Preferential Policies in Procurement China |
Issue Date | 2013 |
Publisher | University of California School of Law. |
Citation | UCLA Pacific Basin Law Journal, 2013, v. 30, p. 149-200 How to Cite? |
Abstract | Preferential 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 Identifier | http://hdl.handle.net/10722/184526 |
ISSN | |
SSRN |
DC Field | Value | Language |
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dc.contributor.author | Chen, J | en_US |
dc.date.accessioned | 2013-07-15T09:53:21Z | - |
dc.date.available | 2013-07-15T09:53:21Z | - |
dc.date.issued | 2013 | en_US |
dc.identifier.citation | UCLA Pacific Basin Law Journal, 2013, v. 30, p. 149-200 | en_US |
dc.identifier.issn | 0884-0768 | - |
dc.identifier.uri | http://hdl.handle.net/10722/184526 | - |
dc.description.abstract | Preferential 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.language | eng | en_US |
dc.publisher | University of California School of Law. | en_US |
dc.relation.ispartof | UCLA Pacific Basin Law Journal | en_US |
dc.rights | Published as UCLA Pacific Basin Law Journal, 2013, v. 30, p. 149-200. © 2013 by the Regents of the University of California. Copying and permissions notice: Authorization to copy this content beyond fair use (as specified in Sections 107 and 108 of the U. S. Copyright Law) for internal or personal use, or the internal or personal use of specific clients, is granted by the Regents of the University of California for libraries and other users, provided that they are registered with and pay the specified fee via Rightslink® or directly with the Copyright Clearance Center. | - |
dc.subject | Government Procurement | - |
dc.subject | Public Procurement | - |
dc.subject | Procurement Linkages | - |
dc.subject | SMEs | - |
dc.subject | Preferential Policies in Procurement | - |
dc.subject | China | - |
dc.title | Challenges in Designing Public Procurement Linkages: The Case Study of SMEs Preference in China’s Government Procurement | en_US |
dc.type | Article | en_US |
dc.identifier.email | Chen, J: jianlin@hku.hk | en_US |
dc.identifier.authority | Chen, J=rp01530 | en_US |
dc.description.nature | postprint | - |
dc.identifier.hkuros | 215605 | en_US |
dc.identifier.volume | 30 | en_US |
dc.identifier.spage | 149 | - |
dc.identifier.epage | 200 | - |
dc.publisher.place | United States | - |
dc.identifier.ssrn | 2367677 | - |
dc.identifier.hkulrp | 2013/041 | - |
dc.identifier.issnl | 0884-0768 | - |