Bruselas declara la guerra a las corporaciones chinas

Brussels has declared war on Chinese corporations, proposing a profound reform of public procurement that would favor European preference. The commissioners are expected to hold their first meeting today to present the initial proposal for the EU's public procurement regulation, which will determine the ability of member states to choose their suppliers.

Key innovations in the legal text include the principle of European preference, which will grant Spain and other members a new tool to impose barriers to entry for third-country companies. This measure is designed to combat China's deficit of reciprocity, as their companies invade the Community market without providing the same treatment to European industries, according to consulted sources.

Under this principle, ministries, autonomous communities, municipalities, and public enterprises could impose barriers to Chinese and Indian firms in their procurement system, a threat that alarms major Asian corporations such as BYD in the automotive sector, construction giants like CCCC, and leaders in port terminals like Cosco, among other Chinese multinationals operating in the EU.

The public procurement system is highly relevant, as procurement through tenders accounts for roughly 20% of the EU's GDP, approximately €3.7 trillion. The definitive text is yet to be known, but a preliminary version leaked in July included this safeguard, along with several strategic sectors to be protected specially through the Buy Europe policy, such as naval and railway sectors.

All sectors except Defense, which has its own specific regulation, are expected to be protected. The entry barriers or protection mechanisms for European companies are still to be defined in a process that will take months to finalize. These mechanisms include additional scoring for proposals made by European companies and additional technical and economic requirements for third-country firms.

The European preference principle is based on the fact that the EU, and not the member states, has jurisdiction over the procurement system. This specific rule is tailored to China and India, and will not affect economies that comply with trade treaties and are part of the World Trade Organization (WTO), so it will not impact American multinationals.

In Spain, the norm poses a serious threat to giants like the auto manufacturer BYD, the largest provider of electric buses for public transport. The Madrid Metro has already bought a hundred vehicles from the Asian giant. At ports, Cosco has concessions to operate terminals in the ports of Valencia and Bilbao. In construction, Puentes y Aldesa are controlled by state corporations of China.