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Brussels opposes cheap bids

After more than ten years of negotiations, European institutions in Brussels have agreed on new public procurement legislation that is intended, among other things, to eliminate Chinese low-cost bids. This was confirmed on Monday evening by Daniel Caspary (CDU), the MEP responsible in the EU Parliament, on Twitter. The International Procurement Instrument (IPI) is intended to ensure that cheap bids from third countries such as China receive a price premium in public tenders. The IPI also offers the option of completely excluding Chinese bids from tendering processes in the EU “provided that the third country concerned refuses in negotiations with the European Commission to open up its public procurement market to EU suppliers to the same extent as the EU does for third-country suppliers,” Caspary explained. This means that if European companies are not allowed to participate to the same extent in tenders in the People’s Republic, Chinese companies in Europe can also be excluded.

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