The European Commission has proposed new public procurement rules aimed at encouraging member states to prioritize European goods and services over foreign alternatives, particularly Chinese products. The initiative, part of a broader strategy to counter China’s economic influence, seeks to shift public spending priorities from cost to quality, sustainability, and local supply chains. The proposals, published on September 9, 2026, are designed to provide public sector buyers with greater legal clarity and a framework to prefer European bids.

The move is seen as a response to concerns that existing EU procurement rules have led to a tendency for public agencies to select the cheapest bids, often favoring non-European firms. Stéphane Séjourné, the European Commission’s lead official on industrial policy, emphasized that the new rules would allow purchasers to give preference to European bids, provided they adhere to international procurement standards. He noted that the regulation would not compel buyers to choose European products but would instead offer them a legal basis to do so.

Public procurement in the EU is estimated to account for 15% of the bloc’s GDP, or approximately €2.6tn (£2.2tn) annually. Brussels officials argue that this is an underused tool for supporting domestic industries, which have already been leveraged by the US and China. The new rules would require public buyers to allocate a minimum 30% weighting to quality in contract awards, with higher weightings for labor-intensive contracts. This shift is intended to promote environmental sustainability and ensure decent jobs, rather than solely cost efficiency.

The proposals have drawn attention to the growing influence of Chinese firms in European markets, particularly in transport and infrastructure. In April, the commission blocked a Chinese rolling-stock company from participating in a Lisbon metro project due to concerns over state subsidies. Similarly, an investigation into Chinese security firm Nuctech, which supplies European airports and ports, is ongoing, with suspicions that the company benefited from unfair advantages.

Séjourné, a close ally of French President Emmanuel Macron, has framed the initiative as a step toward greater transparency and accountability in public spending. He stressed that the decision to favor European products would be a political choice, not a legal obligation. The draft regulation, which aims to simplify procurement rules by merging three laws into one, must still be approved by the European Parliament and EU ministers. It is expected to undergo changes during the legislative process.

The UK government has expressed concern over the proposals, though EU officials claim existing trade agreements will prevent any disadvantage to British firms. Séjourné reiterated that the EU and UK have reciprocal market access agreements, ensuring fair treatment. Non-EU countries with procurement agreements with the bloc are also not expected to face barriers. An online tool will help public purchasers identify which countries are covered by these agreements, with membership in the World Trade Organization’s GPA agreement serving as a key indicator.

The full impact of the proposals remains unclear, as the legislative process is still ongoing. While the EU aims to strengthen its industrial base and counter Chinese influence, the effectiveness of the rules in achieving these goals will depend on their implementation and the responses of member states and international partners.