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ITA Facilitates An Open Bidding Process for China’s 3G Networks

Thursday, December 13, 2012

(ITA)  The Department of Commerce’s International Trade Administration’s (ITA) helped Illinois- based Motorola Inc. in 2009-10 ensure that China’s bidding process for the rollout of its 3G network would not discriminate against foreign participants, enabling Motorola to win a $310 million contract in China.

Why it Matters: If the United States Government had not helped ensure that the bidding process for China’s 3G network, for which investment is expected to result in $66 billion in contracts, did not discriminate against foreign companies, the Chinese bidding process would have effectively inhibited U.S. companies from winning any bids.

The Problem: The Chinese Government intended to favor several domestic, state-owned enterprises in developing its 3G network.

The Solution: Between January 2009 and September 2010, a team of ITA specialists worked with several key Chinese ministries to ensure that bids would be awarded in a fair and transparent manner, technologically neutral, based on commercial considerations, and consistent with China’s WTO commitments. As a result, Motorola reported positive news in the 3G bidding process, with the company winning a $310 million contract.

Working closely with U.S. companies, ITA creates, expands, and defends market access for U.S. goods and services overseas through the Trade Agreements Compliance Program. “We promote policy that develops a more favorable business climate for U.S. companies in global markets; we employ commercial diplomacy to resolve trade barriers; and we leverage our bilateral and multilateral trade agreements to ensure our trading partners live up to their commitments so that our businesses can compete on a level playing-field.” - Assistant Secretary of Commerce for Market Access and Compliance, Michael C. Camuñez.