The Millennium Challenge Corp. has revised its procurement guidelines to exclude government-owned firms from competing for contracts funded by the agency.
The move, which became official Sept. 28, is meant to ensure a “level playing field” for all commercial firms from across the globe, Patrick Fine, MCC’s vice president for compact implementation, told Agence France-Presse.
MCC said it had noticed that an increasing number of state-owned enterprises were securing contracts.
U.S. Sen. Jim Webb (D-Va.) welcomed the move. He urged MCC last month to “immediately cease” action on development contracts in Africa that were awarded to Chinese state-funded companies.
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“I commend the MCC’s prompt response to the concerns I raised in August, so that US tax dollars will no longer fund Chinese government-owned enterprises,” he said in a statement.