Chinese state-backed companies significantly increased their presence in Europe’s rich public-procurement market over the past year, according to a Wall Street Journal analysis that for the first time quantifies how Beijing has expanded its global push to rival Western industrial giants in one of the world’s most sophisticated economies.
The European Union’s public-procurement market is among the world’s largest, valued by EU officials at roughly 2 trillion euros, equivalent to $2.44 trillion, annually. The bloc invites companies world-wide to bid on building its roads, bridges, rail networks and power grids. EU policy makers say the competition keeps costs low, and that European contractors are globally competitive.
This year, Chinese companies landed tenders valued at nearly €2 billion, more than double their wins in any previous year, according to public data. European companies say they are being priced out on their own turf by conglomerates owned or subsidized by Beijing, which Europeans in many cases accuse of predatory pricing with bids that are up to 30% below rival offers. Some political leaders worry that the imbalance will worsen after the coronavirus crisis, as cash-strapped governments borrow heavily to rebuild.
“In effect, European taxpayers are paying the Chinese government to build their infrastructure, which weakens taxpaying European companies,” said Alicia Garcia-Herrero, chief economist for Asia-Pacific at French bank Natixis . “That is worrisome.”
It is unfair competition because the Chinese companies r backed with Communist Government $
Its because of China's forward-looking and state-driven R&D into advanced, lower-cost construction materials, like concrete leaf with balled-up newspaper underneath
DefundChina
EU votes for its own destruction
Seems no one can compete with China and not cry and complain. Why is China such a big bully? And why do the same people that complain about her do it over and over again. Seems as if they got spanked before they would learn their lesson.
One bite at a time, China is eating everyone else's lunch.
this will continue as long as the civil service insists on chasing the lowest bid rather that using public infrastructure investment as part of the bigger societal picture. That doesn't mean splashing money around to your mates, but looking at employment potential, communities,
I’m sure Joe and Hunter are happy. More kickbacks for them.
This is a national security interest
Interesting! ChinaEverywhere
Raise your quality requirements.
Remember when they said the EU is looking after the EU?
Free enterprise exchange or free commodity order