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

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.

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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.