European firms complain of being shut out of Chinese procurement

European companies are being unfairly disadvantaged because of China’s procurement rules which are shutting them out of contract opportunities worth US$1 trillion, according to a new study.

The study, undertaken by the European Union Chamber of Commerce in China, stated that regulations surrounding bidding for public projects were "fragmented, inconsistent, and unevenly implemented."

China's leaders have repeatedly pledged equal treatment for foreign companies.

The chairman of the EU Chamber's public-procurement working group, Gilbert van Kerckhove, said progress has been made, but that many of the challenges stem from the central government struggling to implement bidding regulations nationwide.

Last year van Kerckhove would propose legislation in 2011 to try to force China to give European companies greater access to bids for public contracts.

European leaders also demanded better access to public infrastructure projects in a meeting last year with Chinese Premier Wen Jiabao. Mr. Wen, China's premier, has previously said that China treats foreign firms fairly in awarding contracts.

China is among the world's largest public-procurement markets. The EU Chamber of Commerce report said that under China's economic stimulus plan in 2009 the government spent some 68% of gross domestic product on fixed-asset investment, much of it on projects like roads and railways involving public procurement.

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