The European Commission has put forward a legislative proposal that would let public authorities across the European Union give preference to European companies when awarding contracts for essential public services such as energy, water, railways, ports, airports and postal services. The move is widely seen as a direct response to China's growing role in European infrastructure and public markets.
Announced on Wednesday, the proposal is part of a broader effort by EU policymakers to protect the bloc's single market and reduce economic dependence on Beijing. The EU currently runs a trade deficit with China of roughly €1 billion a day, a figure that has become a focal point in trade debates in Brussels and national capitals alike.
Public procurement in Europe is a massive economic lever: it represents about €2 trillion annually, or 15% of the EU's GDP. The Commission argues that such spending should serve strategic goals, not just the lowest price.
European preference in practice
Under the proposed rules, EU public authorities would be able to exclude non-European companies from tenders when those companies come from countries that do not offer European firms reciprocal access to their own public procurement markets. The measure would also allow contracting authorities to give more weight to European offers in the evaluation process.
Commission Vice-President Stéphane Séjourné explained the rationale: “Public money must serve our collective interests. A public buyer will be able to organise his European preference and to exclude operators coming from countries with which we do not agree on public markets, both on the basis of the nationality of the company or on the base of the origin of the products.”
In practical terms, a municipality in, say, Lyon or Munich could decide to reject a bid from a Chinese state-owned enterprise or from a European firm offering Chinese-made components. Séjourné added: “A municipality will be very clearly able to exclude a Chinese company or a European company that offers Chinese products. It will also be able to give more points and more visibility in his offer to European offers compared to competition offers.”
The proposal also mandates that at least 30% of the evaluation criteria for supplies must be based on quality rather than price alone. This is intended to counter the advantage of low-cost Chinese products, which often win contracts on price.
“The new standard is the best quality-price ratio, and not just the price,” Séjourné said. “Our choices must also be able to meet social and environmental demands, but also sovereignty.”
Reaction from Beijing
China was quick to respond. The China Chamber of Commerce to the EU issued a statement warning that such a European preference could “distort a level playing field” for Chinese companies active in the European public procurement market. The chamber argued that “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.”
This is not the first time Brussels has moved in this direction. In March, the Commission proposed a similar European preference for strategic sectors including green technology, electric vehicles and energy-intensive industries. That earlier proposal also drew sharp criticism from Beijing, which threatened retaliatory measures.
The new legislation still needs to be approved by the European Parliament and the Council of the EU, where negotiations are likely to be intense. Some member states, particularly those with strong export ties to China, may push for a softer line, while others, such as France and Germany, have been vocal about the need for greater economic security.
The proposal comes at a time when the EU is also grappling with other trade and security challenges, including espionage concerns in the semiconductor sector and disputes over France's anti-fast-fashion law. The Commission's move is part of a wider strategy to assert European sovereignty in critical areas, from defence procurement to digital infrastructure.
If adopted, the rules would give European public authorities a powerful tool to shape their supply chains and reduce reliance on foreign suppliers. But they also raise questions about the future of the EU's trade relations with China, which remain deeply intertwined despite growing tensions.
