Trade: Move away from free trade: EU allows exclusion of Chinese companies from tenders

Brussels - The European Commission has granted member states and regional authorities increased autonomy, allowing them to decide whether to exclude Chinese bidders from public procurement contracts. The EU Commission unveiled the corresponding legislative proposal on Wednesday. The reform makes it clear that public procurement entities may exclude Chinese suppliers from the outset because China does not grant reciprocal access to its procurement market.

Suppliers from countries like the United States, the United Kingdom, or Japan, which have opened their procurement markets, will not be excluded. In the future, public contracts will no longer be awarded solely based on price. Specifically, the EU introduces a "price-quality ratio," where quality criteria must account for 30 percent of the assessment, with "made in Europe" serving as one such quality criterion, granting European suppliers an advantage.

Other criteria are also possible, such as sustainability. The "made in Europe" criterion represents an industrial policy turnaround, as Europe previously relied on free trade. Chancellor Friedrich Merz (CDU), who previously criticized the EU for protectionism, has now adjusted his stance. Currently, the EU aims to protect its domestic industry from a flood of subsidized cheap imports from China.