Circular of Three Ministries and Commissions on Giving Play to the Role of Government’s Reservation Function to Support and Respond to the Production and Supply Increase of Materials in Short Supply for Epidemic

To development and reform commissions, finance departments, departments of industry and information technology of all provinces, autonomous regions, and municipalities directly under the Central Government:

The CPC Central Committee and the State Council put a high premium on the prevention and control of the COVID-19 epidemic and regard it as the principal task at present. According to the spirit of meetings of the Leading Group for COVID-19 Prevention and Control under the CPC Central Committee and the relevant deployment of executive meetings of the State Council, and to ensure the supply of medical protective supplies and rapidly improve the capacity for epidemic prevention and control, the relevant matters of giving play to the role of the government’s reservation function to support and respond to the production and supply increase of materials in short supply for epidemic are hereby notified as follows:

I. Encouraging enterprises to take various measures to expand the production and supply of key medical protective supplies

The competent departments should support the enterprises that manufacture key medical supplies for epidemic prevention and control listed in the Catalog of Products Subject to Catch-all Purchase and Reservation by the Government (First Batch) (hereinafter referred to as the Product Catalog) in releasing their existing production capacity, further increasing the yield and achieving the comprehensive resumption of work as soon as possible. Relevant enterprises should also be encouraged to rapidly expand their production capacity through technological upgrading and the addition of production lines (equipment). Substantial supports should be provided for qualified enterprises to switch to other production lines and focus on the production of medical supplies which are urgently needed and in short supply in response to the epidemic. The competent departments should actively help enterprises to solve practical difficulties such as capital, qualification, production site, equipment acquisition and purchase of raw materials, promote the virtuous cycle of upstream and downstream production, and improve the production capacity of the entire industrial chain. In addition, the competent departments should guide the enterprises to improve the production process in a scientific manner, improve the technical level of products and ensure product quality.

II. Implementing the policy of catch-all purchase and reservation of key medical supplies for epidemic prevention and control by the government

Full play should be given to the reservation function of the central government. During the epidemic prevention and control, the variety of key medical protective supplies listed in the Product Catalog should be additionally included in the catalog of reserved materials. Relevant national departments should, in accordance with the existing purchase and reservation system and measures, implement the policy of “catch-all purchase and reservation by the government” for the key medical protective supplies overproduced by the enterprises in the Product Catalog. All localities should mobilize enterprises to increase the production of key protective supplies in short supply as soon as possible, reinforce quality control, strictly implement product standards, and ensure timely delivery. All materials purchased and reserved should be under the unified management and allocation of the State. The competent departments should gradually improve the Product Catalogue according to the situation of epidemic prevention and control, implement dynamic management of the Catalog, and further strengthen the building of a public health emergency supply system.

III. Enhancing the government’s purchase and reservation of local emergency supply

All localities should carefully study the weak links in public health and material reservation exposed in response to the epidemic, establish and perfect targeted systems related to the epidemic prevention and control, and focus on reinforcing weak links. The competent departments should further strengthen the construction of an emergency supply reservation system, innovate systems and mechanisms, expand the scope of purchase and reservation, and increase the scale of reservation. Particularly, it is necessary to increase the scale of government’s reservation of key supplies in response to public health events, and provide policy support for approval and establish, fund subsidies, land use, energy use and financing of each project. The reservation system of each local government should be organically combined with that of the central government to complement each other, enhance the linkage and ensure to form a joint force.

IV. Supporting enterprises in timely production shift for expanded production capacity

Upon the effective control over the epidemic, all localities should mobilize relevant enterprises to switch to other production lines for expanded production capacity according to the needs of epidemic prevention and control and market requirements. Meanwhile, all localities should advance the transformation of product manufacturing from the types listed in the Product Catalog to other types, standards or models with higher market demand, and the shift to satisfy industrial or consumer needs while ensuring the supply of key medical supplies, promote the adjustment of product mix and realize the enterprise transformation and upgrading. For enterprises subject to production shift, appropriate production capacity should be reserved and competent departments of local governments should be encouraged to study and roll out supporting policies and measures within a certain period.

V. Improving the list management system of enterprises obtaining key supports

To standardize the management of the purchase and reservation of materials in short supply for the epidemic, the competent departments of provincial governments should, in accordance with the Product Catalog and the actual needs of epidemic prevention and control, implement a list system-based management for the purchase and reservation of supplies manufactured by enterprises of key supplies for epidemic prevention and control. The list of enterprises should be reviewed and summarized by the localities and submitted to the relevant national departments. For central enterprises, the application may be filed by the competent department of the relevant industry, or the central enterprises may directly submit the application to the relevant national departments. Enterprises should produce at full capacity according to the approved capacity and arrange product allocation in accordance with the unified national requirements. All localities should implement dynamic adjustments to the list of enterprises obtaining key supports according to the needs of epidemic prevention and control and the production and operation status of enterprises. Relevant national departments should strengthen information sharing of the list, ensure effective communication with relevant financial institutions, study and roll out supporting policies.

IV. Strengthening supervision on product quality and the market in accordance with the law

The competent functional departments of the state should guide enterprises to fulfill the main responsibility of compliance in the whole process and strictly comply with the requirements of delivery inspection and release, so as to ensure that relevant materials meet the relevant national standards and meet the needs of epidemic prevention and control. All materials purchased and reserved should be tested and certified in strict accordance with relevant national standards. Purchase and reservation are prohibited for materials or inferior materials that fail to meet relevant national standards. The competent departments should further enhance supervision and inspection of enterprises manufacturing and selling key materials for epidemic prevention and control, resolutely maintain fair and impartial market order, strengthen the supervision of compliance, and strictly investigate and punish enterprises that illegally produce unqualified products or seriously breach the contract in accordance with the law.

Appendix: The Catalog of Products Subject to Catch-all Purchase and Reservation by the Government (First Batch)

National Development and Reform Commission

Ministry of Finance

Ministry of Industry and Information Technology

February 7, 2020