While the procurement of state enterprises is one of the most contentious issues for China’s GPA accession negotiation, the regulation on such procurement is also of concerns under domestic law. From the Chinese domestic perspective, this Article first analyses the extent to which the procurement of state enterprises is regulated by national, ministerial, as well as firm-level procurement rules. On that basis, the incentives for adopting a principled approach to regulating such procurement are explored, such as value for money, preventing corruption, and fighting against local protectionism. A brief suggestion is made regarding the consolidation of the existing rules in the context of complicated underlying institutional framework.