Core Points - The State Council has issued a notice to implement domestic product standards and related policies in government procurement, effective from January 1, 2026 [1][3] - The policy aims to ensure fair competition between domestic and foreign enterprises in government procurement [6][8] Group 1: Domestic Product Standards - The domestic product standard is a fundamental and technically complex aspect of the government procurement policy system [3] - The standard specifies that products must be produced within China, with a required percentage of production components sourced domestically [4] - A 20% price evaluation preference will be granted to domestic products over non-domestic products in government procurement activities [4] Group 2: Equal Treatment of Enterprises - The policy emphasizes equal treatment for state-owned, private, and foreign enterprises, addressing concerns about potential hidden barriers for foreign companies [6] - The government aims to enhance transparency in procurement policies, which is expected to attract foreign investment [6][7] - The Ministry of Finance plans to implement the policy through clear guidelines and training for various stakeholders [6][7] Group 3: Implementation and Transition Period - The policy will be implemented gradually over a five-year period, allowing time for enterprises to adjust to the new standards [8] - The Ministry of Finance will work with relevant departments to determine the required domestic production component ratios for various products [8] - The transition period is designed to facilitate foreign enterprises in adapting their production and investment strategies in China [8]