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Law of the People's Republic of China on Bid Invitation and Bidding

Chapter I General Provisions

Article 1 This Law is enacted in order to regulate bid invitation and bidding activities, protect the interests of the State and the public as well as the lawful rights and interests of the parties involved in bid invitation and bidding activities, increase economic benefits and ensure project quality.

Article 2 This Law is applicable to any bid invitation and bidding activities conducted within the territory of the People's Republic of China.

Article 3 The following construction projects to be undertaken within the territory of the People's Republic of China, including the surveying, design, construction and supervision of such projects as well as the purchase of key equipment and materials for such projects, shall be subject to bid invitation:

(1) large infrastructure and public utility projects that concern public interests and security;

(2) projects invested completely or partly with State-owned funds or financed by the State; and

(3) projects using loans or aid funds from international organizations or governments of other countries.

The specific scope and threshold for bidding of the projects listed in the preceding paragraph shall be formulated by the development planning department under the State Council, together with the relevant departments under the State Council, and be submitted to the State Council for approval.

Where there are provisions in other laws or in the regulations of the State Council governing scope of other projects for which bid invitation is required, such provisions shall be followed.

Article 4 No units or individuals may break up into parts a project for which bid invitation is required by law or try to dodge bid invitation by any other means.

Article 5 Bid invitation and bidding activities shall be conducted in adherence to the principles of openness, fairness, impartiality and good faith.

Article 6 Bid invitation and bidding for projects for which bid invitation is required by law shall be subject to limitations imposed by the local authorities or departments. No units or individuals may, in violation of law, impose limitations on legal persons or other organizations from other regions or departments or exclude them from participating in bidding or illegally interfere, by any means, in bid invitation and bidding activities.

Article 7 All bid invitation and bidding activities and the parties involved shall be subject to supervision in accordance with law.

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