Hey there! Have you heard about the recent news between the European Union (EU) and Chinese companies? Let’s break it down together so it’s easy to understand!
New Rules on the Horizon 📜
The EU is thinking about making new rules that could make it harder for Chinese companies to sell things like medical devices to European governments. This is called “public procurement,” which is when governments buy goods and services from companies.
Why Is This Happening? 🤷
Some people in the EU feel that Chinese companies have an advantage and want to make things fairer for everyone. They use a special rule called the International Procurement Instrument (IPI) to make these changes.
China’s Response 🇨🇳
China isn’t too happy about this. Groups like the China Chamber of Commerce to the EU say these new rules could make trade between the EU and China more complicated. China’s Ministry of Commerce also thinks these rules might not be fair and could create more problems.
Understanding the Bigger Picture 🌍
There’s an international agreement called the Government Procurement Agreement (GPA) that encourages countries to treat each other’s companies equally when governments buy things. The EU and many other countries are part of this agreement.
China has been trying to join this agreement since 2007, but discussions are still ongoing. Meanwhile, Chinese companies have been allowed to participate in EU government purchases, and European companies can join tenders in China too.
What’s Next? 🚀
Both the EU and China are thinking about ways to make things better. For example, China is considering giving the same chances to foreign companies in its government purchases. The EU is also looking at updating its rules.
Why Should We Care? 🌟
International trade affects the world economy and even the prices and availability of products we use every day. Understanding these relationships helps us stay informed about the world!
Your Thoughts? 💭
What do you think about countries making new rules for trade? How do you think it might affect us? Share your ideas with friends and family!
Reference(s):
New restrictions for Chinese companies in EU public procurement
cgtn.com
