Beijing now stipulates that sellers of hi-tech goods must have them accredited based on "indigenous innovation" – meaning they must contain Chinese intellectual property – to be included in a government procurement catalog.
This has had the computer world in an uproar as it can seriously affect sales.
Accredited products will be favored, according to the policy, which several foreign firms say effectively excludes them from the process.
Foreign Ministry spokeswoman Jiang Yu said in a fax statement, "The indigenous innovative product accreditation project is in line with … international rules". The measure "abides by and accords with relevant WTO (World Trade Organization) rules" and "treats both domestic – and foreign-invested enterprises equally and without discrimination."
This is a major issue as Government procurement was worth $87.7 billion in 2008, up 28.5% from the previous year, according to official data.
China Daily reported the Ministry of Foreign Affairs said the new hi-tech policy "encourages all enterprises in China to carry out innovative activity and supports enterprises to increase their investment in research and development."