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Government Procurement Market Lacks Transparency

The China Federation of Logistics & Purchasing (CFLP) announced that the China Public Procurement website (http://www.china-cpp.com/) has been officially established, with headquarters in Wuhan, Hubei Province. It is considered the world’s largest online trading and service center.

According to Chen Yuanzhong, Vice Chairman of the CFLP, government procurement in 2011 was 11.3 trillion yuan (US$1.8 trillion), which accounted for 11 percent of total fiscal spending. However, government procurement is not regulated and lacks transparency and efficiency. China’s procurement market would reach 50 trillion yuan (US$8 trillion) if spending on education, health, housing, railroad, transportation, and energy were included. This number makes China the largest procurement market in the world.

Source: Xinhua, November 4, 2012
http://news.xinhuanet.com/fortune/2012-11/04/c_113597255.htm