Hangzhou will procure more goods from small and medium-sized companies in an effort to provide them with more support. [Photo/IC]

Hangzhou recently decided to procure more goods from small and medium-sized companies in the city, optimize transaction procedures, and decrease transaction costs in order to improve the government procurement business environment and support small and medium-sized companies.

According to a notice released by the Hangzhou finance department, it will reserve more than 30 percent of the government's annual procurement budget for goods from small and medium-sized companies. At least 60 percent of the reserved budget will target small and micro-sized companies.

The notice also states that the purchasing agent must return performance bonds to suppliers in a timely manner after they fulfill their contract.

The purchasing agent must also include initial payment terms in their contracts with suppliers.

The initial payment must be at least 30 percent of the total contract value.