Editorial
Exclude China? Expert: Europe is playing with fire
Seetao 2021-09-02 10:47
  • Once the draft is passed and enters into force, it is not good for China or Europe
  • On the surface, the draft is to protect the interests of EU companies, but in essence it still implements trade protectionism in disguised form
Reading this article requires
8 Minute

Recently, the International Trade Committee of the European Parliament will discuss draft regulations on "International Procurement Instruments" (IPI). This draft is designed to protect companies from EU countries from unfair treatment in international public bidding within the EU. If adopted, the draft may become a means to put pressure on third countries to open up the procurement market. According to German media, according to the draft, Chinese companies may be excluded from EU public procurement contracts in the future.

According to a report in German "Der Spiegel", the above-mentioned draft was proposed by the largest party group in the European Parliament and the European People's Party group. Entering its market, Chinese companies can bid for contracts in the EU without restrictions, but companies from EU countries have great restrictions on entering the Chinese market and are excluded from bidding for public contracts in China.” In addition, "the Chinese government also supports local companies through subsidies, making these companies' prices in the EU market cheaper than their EU competitors." Therefore, the EU wants to change this situation and wants to use a new trading tool to rule out the possibility of Chinese companies obtaining EU public procurement contracts. According to this draft, the EU will exclude third-country companies that do not open the public procurement market from bidding for public contracts.

According to estimates by EU officials, the size of the EU's public procurement market is about 2 trillion euros each year. If the draft comes into effect, Chinese companies will be excluded, which means that Chinese companies will not be able to obtain contracts for roads, bridges, railway networks, and power grids within the EU. Observers believe that in the face of the strong competitiveness of Chinese products, the new draft will provide a protective net for "Made in Europe."

Kaspari, a German CDU politician and one of the authors of the document, declared: "We hope to provide the European Commission with a tool that can exert pressure on countries like China." Kaspari also said that the draft was passed. Have confidence.

The official website of the European Parliament shows that the relevant discussions of the International Trade Commission will be held online in the morning of September 1. Participants included members of the European Parliament, including Chairman of the Trade Commission, Lange. 

Zhao Junjie, a researcher at the Institute of European Studies of the Chinese Academy of Social Sciences, told the Global Times reporter on the 30th that the above-mentioned IPI draft is essentially a clever creation of names and trade protectionism. With the United States carrying out a complete containment of China, Europe is bound to follow the United States and take measures to contain China's rise. Zhao Junjie believes that IPI is a double-edged sword, which will be detrimental to both China and Europe. For Europe, it is "playing with fire". However, if EU members are unwilling to give up enjoying Chinese products based on the interests of each country, the draft will eventually become a dead letter.

Keywords: engineering construction, engineering news, engineering construction information

German media said that the above-mentioned draft becomes a regulation, which requires the EU's final approval in addition to the approval of the European Parliament. The Frankfurter Allgemeine Zeitung pointed out that Hungary has long opposed the document, worrying that the cost of public procurement will increase sharply. Many Nordic countries also hold objections, worrying that IPI will be abused, which will result in the EU’s self-defense. Editor/Sang Xiaomei

Comment

Related articles

Editorial

China-africa green energy cooperation is deepening and making solid progress

03-29

Editorial

A photo exhibition on China-Africa Belt and Road cooperation has opened in Kenya

03-25

Editorial

Jordan expects China to increase investment in various fields in Jordan

03-20

Editorial

Chinese helps Angolan youth lead the way to a broader world

03-18

Editorial

China Pakistan Joint Forces Cultivate New Wheat Varieties for Pakistan

03-13

Editorial

Hunan Yongzhou harbor characteristic industry sail away

03-01

Collect
Comment
Share

Retrieve password

Get verification code
Sure