The EU’s secret weapon to shut out Chinese companies

Gregorio Sorgi

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BRUSSELS — The EU executive wants to cut Chinese firms out of lucrative EU public contracts at home and abroad by overhauling its budget rules, according to three European Commission officials.

In March, the Commission will lay out new instructions to impose additional security requirements on foreign companies bidding for public contracts, targeting Chinese firms in particular.

In the face of heightened geopolitical and trade tensions with the U.S. and China, Brussels is exploring measures that favor European businesses over foreign competitors. The rules would apply to its current and future €1.8 trillion long-term budget, which begins in 2028.