Law

Crack down on bidding chaos and safeguard market fairness

2026-05-20   

Recently, the State Administration for Market Regulation released the first batch of typical cases of systematic rectification in the field of bidding and tendering, involving illegal behaviors such as collusion among bidders in the campus catering field, rental and lending of business licenses in the construction field, illegal buying and selling of certification certificates in the cleaning field, commercial bribery in the engineering construction field, and issuing false testing reports in the ecological environment field. Tendering and bidding is an important component of the national unified market construction, as well as an important mechanism for maintaining fair market competition and improving resource allocation efficiency. It is crucial for promoting the development of the market economy. Through standardized processes and transparent competition, bidding allows eligible market entities to participate fairly in the competition, achieving the best among the best. This not only reduces transaction costs and improves project quality, but also stimulates market vitality. However, some projects in the current bidding field are experiencing illegal and irregular activities, which seriously affect the optimization of the business environment and the construction of a unified national market. In 2024, the General Office of the State Council issued the "Three Year Action Plan for Rectifying Market Order, Building Regulatory System, and Promoting Industrial Development in the Field of Government Procurement (2024-2026)", focusing on solving four types of illegal and irregular behaviors in the field of government procurement, including purchasers setting discriminatory clauses, procurement agencies charging arbitrarily, suppliers providing false materials, and suppliers colluding with bids. The Ministry of Finance, the Ministry of Public Security, and the State Administration for Market Regulation will organize a special rectification work in June 2025, and illegal and irregular behaviors such as bid rigging and collusion will also be included in the scope of rectification. The typical cases released this time reflect the problems of power money transactions and unfair competition in the current bidding field, and fully demonstrate the necessity and effectiveness of cracking down on and rectifying them. By focusing on cracking down on such behavior and addressing these issues, it helps to build a pro clean government business relationship, stabilize market expectations, promote fair competition, and create a more standardized, orderly, and fair competition bidding market environment. The essence of open bidding is to enable eligible enterprises to bid fairly and achieve survival of the fittest through scientific evaluation. This can not only enable relevant departments to purchase goods and services beyond their value, but also guide enterprises to compete fairly and win by relying on strength and reputation. In order to regulate the order in the field of bidding and tendering, China has successively introduced laws and regulations such as the Bidding and Tendering Law and the Implementation Regulations of the Bidding and Tendering Law, clarifying the behavioral boundaries and legal responsibilities of market entities. The vitality of a system lies in its implementation. If relevant laws and regulations are not effectively enforced, various chaos will arise, causing bidding to lose its original value. In the typical case disclosed this time, there are illegal and irregular behaviors involving suppliers providing false materials and collusion in bidding. For example, a company processed false certification certificates for seven units for bidding and charged agency fees, allowing unqualified companies to get away with it. Such illegal and irregular behavior not only undermines the fair competition order, causes high-quality enterprises to miss market opportunities, and leads to the "expulsion of good coins by bad coins", but may also affect the execution quality and safety of winning projects. For example, in a typical case, a company bribed the person in charge of a bidding project to gain an unfair competitive advantage during the bidding process and win the bid. This kind of collusion between officials and businessmen has led to the government's bidding losing its fair competition value and becoming a tool for some people to use for personal gain. As the saying goes, 'wool comes from sheep.' The cost of commercial bribery will inevitably be passed on to the winning project, often leading to poor project quality and even causing major disasters due to 'tofu dreg engineering'. At the same time, some bidding agencies and third-party intermediaries responsible for the qualification review of bidding enterprises have also engaged in illegal operations, allowing problematic enterprises to get away with it and disrupting the bidding order. In a typical case released this time, an environmental monitoring service company in Xiamen, as a third-party testing agency, issued false testing reports, some of which were used for the performance of a winning project. The investigation and punishment of this case effectively ensured the quality of the bidding project execution and avoided the acceptance of problematic projects with defects. How to promote these professional and authoritative third-party organizations to play their due role, rather than turning a blind eye or even colluding with bidding companies, is also a crucial issue. To solve the deep-seated problems in the field of bidding and tendering, it is necessary to strengthen rigid constraints, increase punishment, and make market entities dare not cross the line. If the probability of being discovered and investigated is low and the punishment is insufficient, it will encourage some enterprises to have a mentality of luck and make them feel confident in the bidding system. Standardizing the market order in the field of bidding and tendering is a long-term systematic project, which requires the establishment of a credit based regulatory system and the formation of a credit first public resource trading market culture. Only by making enterprises that uphold their promises stand out and eliminating those that break their promises can we continue to promote the survival of the fittest in the public resource trading market. (Outlook on the New Era) (Author Ma Liang, Professor at the School of Government Management, Peking University)

Edit:Yiyi Responsible editor:Jiajia

Source:legaldaily

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