The US says all the state-owned, public-interest-oriented enterprises in the US are considered  government procurement entities. And due to their engagement in public welfare undertakings, even some private firms are included.

According to the Agreement, enterprises whose senior management are appointed by the government, annual revenues are reported to the government, and businesses are intervened by the government should be included in the list.

But Chinese experts note that different countries should be treated differently—China has far more state-owned firms than the US, and they are usually bigger than those in the US. If all are counted, they argue, the two countries are not equally open GPA members.

In response, the US delegates stress that equality for the Agreement refers to equality in terms of rules, rather than money or quantity.

Professor Xu Huandong of Central University of Finance and Economics says that there's much room for negotiation since GPA is a voluntary agreement.

Adapting Existing Laws
Chinese SOEs procure according to Invitation and Submission of Bids Law only when there's a construction project. Legally speaking, Invitation and Submission of Bids Law is a procedural law, while Government Procurement Law is a substantial law, which, in theory, public biddings should apply to.

Like SOEs, construction projects are also controversial. Wang Shaoshuang of the government procurement section under the Ministry of Finance says that in foreign countries, construction projects such as bridges and power stations are all procured by the government, while in China, such procurement is covered by bidding law.

Some criticize the Government Procurement Law's neglect of construction projects, what they argue is the most significant aspect of procurement. Wang admits there's need to improve the current government procurement system, and says that the government is studying ways to improve it.

One option is that different interest groups negotiate amendments to both laws. To prepare for  amending the Government Procurement Law, the Ministry of Finance has reportedly been assessing its fulfillment since last year.

But any amendment will involves complicated bureaucratic procedures. With this in mind, China's GPA talks have a long journey ahead.