By Rong Xiandong (chinadaily.com.cn)
Updated: 2007-08-07 17:13

The State Council has issued a circular requiring governments at all levels to prioritize energy-saving products in their purchases, to encourage environmental protection and reduce government agencies' expenditures on energy.

According to the circular, the aim is to establish a management system for the list of government purchasing items. The Ministry of Finance and the National Development and Reform Commission (NDRC) are responsible for making the new list and will release it soon.

The list includes two categories. The first category includes products the government will give high priority, and the other is items that government organs must purchase.

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Products in the first category must meet a series of requirements. First, they must be certified by government designed institutions as energy-efficient products. Second, they need to utilize mature technology, of reliable quality and available for mass production. Third, the suppliers have to meet the relevant requirements in government purchasing law and provide sound supply system and after-sales services.

Products need to meet more demanding standards in addition to the requirements for the first category to qualify the second category. First, the products must be suitable for various government departments. Second, the products must be highly energy efficient. Third, each product should have at least five suppliers in order to avoid monopoly.

Experts said listed companies in the five industries of home appliances, information technology and lighting, power, and sanitary equipment are expected to benefit from the new purchasing system.

China has been committed to reducing energy consumption by government bodies in order to support the national goal of saving on energy and protecting the environment.

The Ministry of Finance and NDRC released rules on energy-efficient products and a list of the products in 2004, noting the products have priority in government departments' purchases.

In 2005 and 2006, the government successively adjusted the purchasing list, expanding it to include 23 kinds of products under 18 categories from the original 10 types under eight categories. The number of enterprises on the list was increased to 266 from 88.