Govt buying goes online (2)

If education, health, properties, transportations and energy are included, the figure for 2011 would reach 5 trillion yuan, according to the China News Service.

The platform will also publicize the punishment meted out to suppliers who violate the law.

"The website eliminates the possibility of trading at unreasonable prices by making the market transparent," Xu Xiang-lin, professor with the School of Government at Peking University, told the Global Times.

Xu said that moving the procurement process online can enhance the efficiency of government and reduce costs by centralizing scattered purchasing procedures, but, he adds, it is only a first step.

"Bulk purchases should be further promoted to further reduce costs and the higher efficiency should ensure the qualifications of suppliers are strictly examined," said Xu.

The Government Procurement Law regulates the activities of purchasers and suppliers and improves the efficiency of government procurement. Over the last 10 years the law has helped save 13.8 billion yuan, reported the People's Daily.

The total size of global public procurement has reached $6 trillion in 2011. Public procurement in developed countries accounts for more that 10 percent of their GDP.