EU tightens public procurement rules to counter Chinese competition

The European Union is implementing sweeping changes to its public procurement framework designed to bolster European firms and safeguard critical sectors from intensifying competition abroad. The reform represents a strategic shift in how the 27-member bloc allocates government contracts, with officials seeking to ensure that public spending supports domestic industrial capacity and technological advancement.

Under the revised approach, EU member states are expected to prioritise European companies in key procurement decisions, particularly in sectors deemed vital to the bloc's economic security and strategic interests. The measures reflect growing concerns among European policymakers about China's expanding economic influence and technological capabilities, as well as competitive pressures from the United States.

The overhaul addresses what EU officials characterise as structural disadvantages faced by European enterprises in competing for government contracts. By directing public spending toward European suppliers, the bloc aims to strengthen its industrial base and reduce dependency on foreign competitors in critical areas including energy, defence, and digital infrastructure.

The procurement reform is part of a broader European strategy to enhance economic sovereignty and competitiveness. Analysts suggest the changes signal a departure from the EU's traditional open-market approach, reflecting a more protective stance toward domestic industries as geopolitical tensions increase and supply chain vulnerabilities become apparent.