Centralizing Public Procurement in China: Task environment and organizational structure

Abstract

This article explores current environment and practices of public procurement in China, aiming to summarize the task environment and to find a favourable organizational structure. We selected three representative procurement centres and conducted an in-depth field study on their purchasing practices. Given China's political and administrative context, we conclude that the task environment should consist of a strong Decision-Making Team, a unified supervisory agency, constituent institutions and vendors. We recommend a unified procurement centre with a functional structure as a favourable choice. The key departments of a procurement centre include Purchasing/Tendering, Contract Management and Inventory Allocation.