Closing a Legal Gap Between China and WTO 　

Governments are big spenders, and the World Trade Organization’s Agreement on Government Procurement opens government purchases to international competition. The voluntary agreement, in effect since 1996, currently has 28 members, all developed nations, who agree to regulations and schedules. China has also applied, but other members balk at that application: “Chinese state-owned enterprises…are not listed as ‘procuring entities’ in China’s Government Procurement Law – a sticking point that has fueled US and EU ire in trade negotiations,” reports Xi Si in an article from News, translated from Chinese for the Economic Observer Online. Governments traditionally tend to rely on domestic suppliers, but can also save money by opening the competition to more bidders. The WTO agreement extends to states, provinces or public utilities and covers basic commodities, technology equipment or construction services. China argues it has more state-owned enterprises than members to the agreement do and its enterprises are larger. – YaleGlobal