European companies will be excluded if the budget for
procurement is above 45 million yuan ($6.28 million), according
to a notice from the Finance Ministry on Sunday with the
restrictions in place the same day. The move will not apply to
European companies that have invested in China and that
manufacture goods in the country.
China on Friday imposed anti-dumping duties on European brandy,
most notably cognac produced in France. While the duties on
brandy include several exceptions for major brandy producers,
China and the EU have multiple trade disputes across a range of
industries. China protested after many European countries levied
duties on EVs made in China. Since then, China has also launched
investigations into European pork and dairy products.
In June, the EU announced that Chinese companies were to be
excluded from any government purchases of more than 5 million
euros ($5.89 million). The measure seeks to incentivise China to
cease its discrimination against EU firms, the EU said, accusing
China of erecting "significant and recurring legal and
administrative barriers to its procurement market.”
In response, China has said it had “no choice but to implement
countermeasures.”
“China has repeatedly expressed through bilateral dialogues that
it is willing to properly handle differences with the EU through
dialogue and consultation and bilateral government procurement
arrangements,” said a statement from a spokesman with the
Ministry of Commerce. “Unfortunately, the EU has ignored China’s
goodwill and sincerity and still insisted on taking restrictive
measures and building new protectionist barriers.”
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