Intensifying nationwide environmental enforcement is affecting foreign company supply chain management, compliance, and reporting procedures in China. New rounds of environmental inspections have already led to increased supply chain disruption and, in some cases, factory shutdowns for months. This pervasive nationwide trend has important implications for companies as they approach environmental compliance.
Chinese regulations on tendering and bidding practices published by the Ministry of Finance (MOF) in July are a promising sign for US pharmaceutical and medical device manufacturers that government procurement behavior will be better regulated to guarantee consideration of quality alongside price. However, true improvement for the industry will require regulators to faithfully implement the law and refrain from unofficial practices such as local favoritism, which sometimes plague procurement processes.