The European Commission has proposed new rules allowing public authorities to favor European companies and products in key sectors, potentially excluding firms from countries like China.

The European Commission unveiled a legislative proposal on Wednesday that would allow EU public authorities to prioritize European companies in public procurement for essential services. The initiative covers sectors including energy, water, railways, ports, airports, and postal services. The proposal aims to protect the bloc's market amid ongoing trade tensions with China, which currently maintains a significant trade deficit with the EU.

Exclusion of Non-European Bidders

Under the proposed rules, public authorities could exclude companies from countries that do not grant European firms reciprocal access to their own procurement markets. Commission Vice-President Stéphane Séjourné stated that municipalities would be able to exclude specific companies or those offering products from non-compliant nations. Additionally, the proposal allows authorities to grant preferential scoring to European offers.

Focus on Quality and Sovereignty

The Commission is proposing that at least 30% of the evaluation criteria for public procurement contracts be based on quality rather than price alone. Officials stated this shift is intended to address social, environmental, and sovereignty demands, while also impacting low-cost imports. The legislation must still be approved by the European Parliament and the EU Council.

Reaction and Trade Context

China’s Chamber of Commerce to the EU criticized the proposal, stating it could distort the level playing field and should not discriminate based on nationality or origin. This follows a similar proposal in March regarding green technology and automotive sectors that also drew opposition from Beijing. EU Trade Commissioner Maroš Šefčovič is scheduled to visit China in early October to discuss rebalancing trade relations.