Brussels is seeking to prevent foreign state-subsidised companies from undercutting EU rivals when bidding in the highly lucrative public procurement market, as it expands its economic armoury to target alleged unfair dealing by Beijing and other capitals.
The European Commission crackdown on companies deemed to be benefiting from excessive public support from non-EU governments is in part a response to years of frustration over China’s perceived refusal to honour vows to open its markets to European businesses.
While falling far short of a US-style effort to “decouple” from China, the new proposals unveiled on Wednesday by commissioners Margrethe Vestager, Thierry Breton and Phil Hogan are the latest sign of a tougher EU approach to what it now dubs a “systemic rival”, diplomats said. Officials believe the economic slump triggered by the pandemic has only added to the urgency of the situation.