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.