National capitals urged to reduce their ‘strategic dependence’ on Beijing when issuing public contracts
The European Commission is expected to propose a radical overhaul of the EU’s procurement rules later this week, in the bloc’s latest effort to limit its economic reliance on China.
A draft of the EU executive’s Public Procurement Act, which is set to be officially unveiled by EU industry chief Stéphane Séjourné on Wednesday, includes provisions aimed at reducing “excessive focus” on price when issuing public tenders and curbing “harmful strategic dependencies on third-country suppliers”.
Though not mentioned by name, China is the clear target of the draft law, which could still change before it is formally published. Brussels has repeatedly accused Beijing of undercutting EU companies by unfairly subsidising Chinese firms and condemned the country’s export restrictions on critical minerals, whose production is dominated by China.
“In a geopolitical context marked by intensifying competition, supply-chain vulnerabilities and the weaponisation of economic dependencies, the way public buyers spend money has become a matter of strategic relevance,” the proposal notes, adding that public procurement accounts for roughly 15% of the EU’s GDP.
