Europe: New Rules to Curb Competition from Chinese Companies

The European Commission has unveiled plans aimed at ensuring that EU public funds are used in a more strategic manner, proposing a new set of rules governing the procurement of school equipment, road construction, and other public purchases. Stefan Siegner, the EU Commissioner for Industry, stated: “Public procurement is a strategic tool, especially at a time when China, India, the United States, and all current major powers are using it as part of their own industrial and economic strategies.” The Commission seeks to continue granting preference in the public sector of EU member states to European companies at the expense of suppliers from non-EU countries, such as China, because these countries do not provide European companies bidding for public contracts with equal opportunities to win them, according to the German news agency dpa. In specific sectors, such as car batteries and concrete, the European Commission earlier this year proposed granting preference to European products, and these proposals are currently being discussed by members of the European Parliament and EU member states. The newly introduced general rules stipulate reciprocity for companies from countries that have specific trade agreements with the EU allowing European companies to compete for public contracts there. Siegner emphasized that products from the United Kingdom and the United States, for example, would be treated the same as European products, whereas this would not apply to Chinese products. The European Commission also intends to amend contract award criteria so that aspects related to the environment, innovation, safety, resilience, and working conditions during manufacturing are given greater weight in the evaluation of bids.