Hong Kong, August 2025 — The Government Logistics Department (GLD) has announced the partial termination of its bottled water supply contract with mainland vendor Xin Ding Xin Trade Co., Ltd. (XDX), citing doubts about the company’s ability to perform under contract terms.
The GLD stated: “The department said it was not satisfied that Xin Ding Xin Trade Co Ltd was still capable of performing the contract … and decided to partially terminate the said contract … in accordance with contract terms.” The contract, signed in June 2025 and scheduled for 36 months, had marked one of the first major water supply awards to a mainland vendor, replacing long-time provider AS Watson Group.
Following the partial termination, AS Watson Group has resumed supplying bottled water under its ‘COOL’ brand to selected government offices on Hong Kong Island and nearby outlying areas. Authorities also confirmed the matter has been referred to the Police for investigation.
Civil Servants Resorting to Alternatives
Amid growing unease, some civil servants have been observed ordering bottled water independently or boiling tap water for drinking, highlighting a lack of trust in the new vendor arrangement. Posts circulating online suggest daily deliveries of privately purchased water to government offices, with workers openly expressing reluctance to rely on the mainland supplier.
Government Response and Safety Assurances
Chief Executive John Lee has reassured the public that all suppliers are subject to strict monitoring. Every bidder must submit certified independent lab results, while GLD carries out routine sampling and testing. Recent tests have confirmed all water supplied complied with safety standards, though the vendor’s operational capacity remains under question.
This case has underscored both the sensitivity of public trust in government procurement and the reputational impact when civil servants themselves signal skepticism over essential services.