China urges EU to revise rules of procurement

China has expressed grave concern over the European Commission's proposed Public Procurement Act, the Ministry of Commerce said on Thursday, in the wake of the group's latest push for "European preference" provisions that could exclude or restrict third-country companies.

Brussels' protectionist measures, if implemented, would inevitably strain trade ties between China and the European Union, officials and experts said, calling for deeper industrial cooperation and fewer barriers to trade.

The European Commission unveiled the proposal on Sept 9, setting out "European preference requirements", allowing public buyers to favor EU suppliers and restrict access for foreign bidders not covered by the EU's international procurement commitments. Security and supply chain resilience could also be weighed in bid evaluations, according to the draft.

"The EU is pursuing protectionism in the name of cybersecurity and industrial development," He Yadong, a spokesman for the ministry, said at a news conference in Beijing on Thursday.

He pointed to two other legislative proposals put forward by the EU this year — proposed revisions to the Cybersecurity Act, as well as the Industrial Accelerator Act — saying that Brussels has repeatedly introduced discriminatory provisions and tightened market access conditions.

The ministry called on Brussels to amend the discriminatory provisions of the proposed legislation, abide by World Trade Organization rules and keep its market open.

"The EU should provide a fair, transparent and nondiscriminatory business environment for companies investing and operating in Europe," He said.

China will closely follow the EU's legislative process and assess its impact in a timely manner, the spokesman added.

Cui Fan, a professor of international trade at the University of International Business and Economics in Beijing, said that implementing these discriminatory restrictions would set back China-EU trade and cooperation across industrial supply chains.

Meanwhile, on Wednesday, European Commission President Ursula von der Leyen said that the EU has vowed to use "all the tools" at its disposal to rebalance ties with China. In her State of the Union address, she said that a "second China shock" had already arrived in Europe.

Stressing that China's position remains consistent and clear, He, the ministry spokesman, said, "We do not engage in 'megaphone diplomacy' or 'a war of words'."

One day after von der Leyen's address, Commerce Minister Wang Wentao held a video meeting with EU Commissioner for Trade and Economic Security Maros Sefcovic, at the latter's request, to discuss bilateral economic and trade issues, according to a ministry statement.

Sino-US tariff talks

Also at Thursday's briefing, ministry spokesman He said that China and the United States are maintaining close communication on a framework for reciprocal tariff reductions covering $30 billion worth of goods from each side.

Further progress will be announced in due course, he added.

zhangchenxu@chinadaily.com.cn