The European Union flags in front of EU headquarters in Brussels, Belgium. Photo: Xinhua

Chinese companies are strongly opposed to any measures that would exclude or restrict third-country companies from participating in EU public procurement on the basis of so-called non-market factors, such as the country of origin of the company, including where such measures are justified on grounds of economic security or reducing supply chain dependencies, a Chinese business chamber in the Europe said on Wednesday. 

The comment was in response to the European Commission's proposed Public Procurement Regulation, which was reportedly published on Wednesday (local time) as a further "Buy European" plan. 

CCCEU said the chamber is highly concerned about the provisions regarding "European preference", third-country market access, and supply chain security, as well as the interaction with other EU legislation relevant to public procurement, including the Net-Zero Industry Act, the International Procurement Instrument (IPI) and the future Industrial Accelerator Act (IAA). 

"Whether applied on a voluntary or mandatory basis, the proposed 'European preference' could, when combined with other sector-specific legislation, exclude Chinese companies or create excessively high market access barriers in areas such as net-zero industries, healthcare, automotive, rail or maritime infrastructure, and ICT on non-technical grounds," CCCEU said in a post seen on its WeChat account. The chamber stressed that this move could distort a level playing field for Chinese companies participating in the European public procurement market. 

The Chinese chamber called on the European Commission to take a prudent approach to its policy directions concerning "European preference" and restrictions on third-country market access when advancing the Public Procurement Regulation. It also urged the European policymakers should duly consider the actual operations of Chinese companies in Europe and their contributions to local economies, rather than assessing their eligibility for and participation in public procurement simply on the basis of their country of origin or other non-technical factors.

"Any such measures should be based on clear, objective, transparent and verifiable criteria, while respecting the principle of proportionality and the EU's international trade obligations. And public procurement should not discriminate against suppliers or goods on the basis of the supplier's nationality or the country of origin of the goods," CCCEU noted. 

It is hoped that "the new public procurement framework will further enhance market transparency, predictability and regulatory clarity, while providing a fair and stable environment for companies of all origins to participate in public procurement," the chamber said. 

Global Times