(Yicai Global) June 29 -- The United Nations Procurement Center in Shanghai, the first of its kind in Asia, got underway yesterday. It will help local companies to take part in international public procurement processes and become direct suppliers to the UN.

The center will help small and medium-sized firms as well as women-owned businesses to take part in the UN's international public procurement, which is the process of allowing companies from around the world to bid on contracts for goods and services, Yicai Global learned at the opening ceremony.

Many Chinese firms have been excluded from international procurement, largely due to a lack of knowledge, delayed information and inadequate supporting services, said Zhang Yi, an official at the China International Center for Economic and Technical Exchanges under the Ministry of Commerce.

Set up by UN agencies and China’s Ministry of Commerce in Shanghai’s western Qingpu district, the center will also create a fair competition environment as well as reduce procurement costs for international organizations. Qingpu district is close to the city’s Hongqiao International Airport and the China International Import Expo venue, making it well situated for global trade deals.

Over one third of commodities purchased by the UN each year are made in China, but the vast majority are bought through intermediary businesses, indicating that most Chinese companies are not capable of dealing with the New York-based agency directly, Zhang said.

The UN’s total procurement value in 2019 came to USD19.9 billion, only 1.24 percent of which was supplied directly from China, despite it being the world’s biggest manufacturer, Zhang said.

Editor: Kim Taylor