The European Union (EU) began to review a law that serves to prevent foreign companies, such as large China companies, from getting public contracts in Europe using illegal advantages. According to European authorities, the Chinese government helps some companies in the country financially, allowing them to make cheaper offers and make European competitors at a disadvantage.
This law was created in 2023 and is called regulation of foreign grants. It allows the European Commission – the EU executive body – to block contracts or purchases if you find that a company has received money from your government to make advantage of the dispute. Brussels states that this type of help is common in China, especially in sectors
The first report on how this law is operating will be presented in July 2026. “It will be an opportunity to take stock of the application and compliance with the regulation to date and to predict possible improvements,” said Teresa Ribera, vice president of the European Commission.
Industrial Strategy Commissioner Stéphane Séjourné recalled that purchases made by governments and public agencies represent about 15% of the entire EU economy. “Given the magnitude of this figure, Europeans expect the selection process to be equitable and not distorted by subsidies from third countries,” he said.
To prepare this review, the EU will listen to companies, governments, experts and even ordinary citizens in a public consultation process. The goal is to reinforce the rules for protecting the European market from commercial practices that, according to Brussels, are being used by China to expand their economic influence on the continent.
