China’s Ministry of Commerce (MOFCOM) has expressed grave concern over the European Commission’s proposed Public Procurement Act, which includes “European preference” provisions that could exclude or restrict third-country companies. Implementing the protectionist measures would inevitably strain trade ties between China and the European Union, officials and experts said, calling for deeper industrial cooperation and fewer barriers to trade. The European Commission unveiled the proposal on September 9, allowing public buyers to favor EU suppliers and restrict access for foreign bidders not covered by the EU’s international procurement commitments. Security and supply chain resilience could also be weighed in bid evaluations, according to the draft.
“The EU is pursuing protectionism in the name of cybersecurity and industrial development,” MOFCOM Spokesman He Yadong said at a news conference in Beijing. He pointed to two other legislative proposals put forward by the EU this year – proposed revisions to the Cybersecurity Act, as well as the Industrial Accelerator Act – saying that the EU has repeatedly introduced discriminatory provisions and tightened market access conditions. The Ministry called on the EU to amend the discriminatory provisions of the proposed legislation, abide by World Trade Organization rules and keep its market open. “The EU should provide a fair, transparent and non-discriminatory business environment for companies investing and operating in Europe,” He said.
Cui Fan, Professor of International Trade at the University of International Business and Economics in Beijing, said that implementing these discriminatory restrictions would set back China-EU trade and cooperation across industrial supply chains, the China Daily reports.
Separately commenting on media reports that the EU asked China to voluntarily restrict exports of hybrid vehicles to Europe, a Spokesperson for the Ministry of Commerce said that so-called “voluntary export restraints” seriously violate WTO rules and run counter to the principles of the market economy and fair competition. China firmly opposes this. China’s position is consistent: any solution between China and the EU must ensure a balance of interests, comply with WTO rules and the respective domestic laws of both sides, and fully take into account the interests of both industries, according to MOFCOM.
