Abstract
This chapter examines the EU’s and China’s approach to procurement market integration, particularly with regard to the EU’s recent public procurement reform and identifies similarities and differences in the approaches. EU insights of facilitating market integration between Member States are not always applicable in the context of a nation state such as China yet both countries do address similar issues that affect market integration. In both jurisdictions a trade-off between more intra-regional and inter-regional trade can be observed entailing that not every measure supporting competition is likely to lead to more market integration.
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Notes
- 1.
Griffiths (2004).
- 2.
Schumann (1990), p. 13.
- 3.
Bovis (2012), p. 482.
- 4.
See Weishaar (2013).
- 5.
European Commission (2004), p. 4. Data for all EU 15 Member States ranges from 1995 to 2002 and is robustly above 16 %.
- 6.
Poncet (2005).
- 7.
Directive 2014/24/EU of the European Parliament and of the Council (2014) on public procurement and repealing Directive 2004/18/EC. OJ L 94/65, 26 February 2014.
- 8.
Government Public Procurement law of the People’s Republic of China. Adopted at the 28th meeting of the Standing Committee of the Ninth National People’s Congress of the People’s Republic of China; 29 June 2002.
- 9.
Council Directive 71/305/EEC of 26 July 1971 concerning the co-ordination of procedures for the award of public works contracts, 16 August 1971.
- 10.
Council Directive 77/62/EEC of 21 December 1976 coordinating procedures for the award of public supply contracts, 15 January 1977.
- 11.
Commission of the European Communities (1988) Europe 1992, the overall challenge. SEC (88) 524 final, Brussels, 13 April 1988.
- 12.
European Commission (1996a) COM (96) 583 final, 27 November 1996.
- 13.
European Commission (1998) COM (98) 143 final, 11 March 1998.
- 14.
European Commission (2000) COM (2000)275 final/2, 30 August 2000, replacing COM(2000)275 final, 10 May 2000.
- 15.
European Commission (2000) COM (2000)275 final/2, 30 August 2000, replacing COM(2000)275 final, 10 May 2000, pp. 4–16.
- 16.
Article 71 (1) Directive 2004/17/EC of the European Parliament and of the Council (2004) coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors. OJ L 134/1, 31 March 2004 and Article 80 (1) Directive 2004/18/EC of the European Parliament and of the Council (2004) on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts. OJ L 134/114, 31 March 2004.
- 17.
European Commission (2004), pp. 15–16.
- 18.
Public procurement legislation in force in 2002 included Council Directive 89/665, Council Directive 92/13/EEC, Council Directive 92/50/EEC, Council Directive 93/36/EEC, Council Directive 93/37/EEC, Council Directive 93/38/EEC.
- 19.
- 20.
- 21.
European Court of Justice, Korhonen and others, 22 March 2003, Case C-18/01, para 52, European Court of Justice, University of Cambridge, Case C-380/98, 3 October 2000, para 17, European Court of Justice, Universale-Bau and others, Case C-470/99, 12 December 2002, para 52, European Court of Justice, Truley, Case C-373/00, 27 February 2003, para 42, European Court of Justice, France v. Commission, Case C-237/99, 1 February 2001, para 42, European Court of Justice, Mannesmann Anlagenbau Austria and others, Case C-44/96, 15 January 1998, para 33, European Court of Justice, Gemeente Arnhem and Gemeente Rheden, Case C-360/96, 10 November 1998, para 42–43, European Court of Justice, Commission v. Spain, Case C-283/00, 16 October 2003, para 92.
- 22.
Competition: European Court of Justice, Commission/Spain, Case C-214/00, 15 May 2003, para 53, European Court of Justice, Fabricom SA v. Belgian State, joined cases C-21/03 and C-34/03, 3 March 2005, para 26, European Court of Justice, Concordia Bus Finland, Case C-513/99, 17 September 2002, para 81, European Court of Justice, Impresa Lombardini SpA – Impresa Generale di Construzioni, joined cases C-285/99 and C-286/99, 27 November 2001, para 35, European Court of Justice, Fracasso and Leitschutz, Case C-27/98, 16 September 1999, para 26, European Court of Justice, Universale-Bau and others, Case C-470/99, 12 December 2002, para 89, European Court of Justice, Sintesi SpA, Case C-247/02, 7 October 2004, para 35, European Court of Justice, Commission v. Denmark, Case C-243/89, 22 June 1993, para 33, European Court of Justice Ordine degli Architetti delle province di Milano e Lodi and others, Case C-399/98, 12 July 2001, para 52 and 75, European Court of Justice, Beentjes, Case C-31/87, 20 September 1988, para 21.
- 23.
The ECJ states that Directives 92/50, 93/46 and 93/37 which taken as a whole constitute the core of Community law on public contracts are intended to attain similar objectives in their respective fields and that there is no reason to give a different interpretation to provisions which fall within the same field of community law and have substantially the same wording. See European Court of Justice, Kauppatalo Hansel Oy, Case C-244/02, 16 October 2003, para 34–35 and European Court of Justice, Concordia Bus Finland, Case C-513/99, 17 September 2002, para 90–91. Consequently former case law falling under any of these directives is cited below. Case law concerning public procurement and the internal market/freedoms: European Court of Justice, Commission vGermany, joined cases C-20/01 and C-28/01, 10 April2003, para 60, European Court of Justice, Case C-26/03, Stadt Halle and RPL Recyclingpark Lochau GmbH. 11 January 2003, para 46, European Court of Justice, Commission v. Italy, Case C-199/85, 10 March 1987, para 12, European Court of Justice, Holst Italia, Case C-176/98, 2 December 1999, para 23, European Court of Justice, Ballast Nedam Groep I, Case C-389/92, 14 April 1994, para 6, European Court of Justice, SIAC Construction, Case C-19/00, 18 October 2001, para 32, European Court of Justice, Concordia Bus Finland, Case C-513/99, 17 September 2002, para 32, European Court of Justice, Hospital Ingenieure Krankenhaustechnik Planungs GmbH, Case C-92/00, 18 June 2002, para 43, European Court of Justice, University of Cambridge, Case C-380/98, 3 October 2000, para 16, European Court of Justice, Bent Mousten Vestergaard, Case C-59/00, 3 December 2001, para 21, European Court of Justice, Truley, Case C-373/00, 27 February 2003, para 41, European Court of Justice, Universale-Bau and others, Case C-470/99, 12 December 2002, para 51 and 89, European Court of Justice, France v. Commission, Case C-237/99, 1 February 2001, para 41, European Court of Justice, Impresa Lombardini SpA – Impresa Generale di Construzioni, joined cases C-285/99 and C-286/99, 27 November 2001, para 34, European Court of Justice, Ordine degli Architetti delle province di Milano e Lodi and others, Case C-399/98, 12 July 2001, para 52.
- 24.
Equal treatment: European Court of Justice, SIAC Construction, Case C-19/00, 18 October 2001, para 33–34, European Court of Justice, Commission v. Denmark, Case C-243/89, 22 June 1993, para 33, European Court of Justice, Commission v. Belgium, Case C-87/94, 25 April 1996, para 54, Court of First Instance, Strabag Benelux v. Council, Case T-183/00, 25 February 2003, para 39, European Court of Justice, Fabricom SA v. Belgian State, joined cases C-21/03 and C-34/03, 3 March 2005, para 26 and 29, European Court of Justice, Concordia Bus Finland, Case C-513/99, 17 September 2002, para 81, European Court of Justice, Parking Brixen GmbH, Case C-458/03, 13 October 2005, para 48, European Court of Justice, Universale-Bau and others, Case C-470/99, 12 December 2002, para 91 and 93, European Court of Justice, GAT, Case C-315/01, 19 June 2003, para 73, European Court of Justice, EVN and Wienstrom, Case C-448/01, 4 December 2003, para 47, European Court of Justice, Hospital Ingenieure Krankenhaustechnik Planungs GmbH, Case C-92/00, 18 June 2002, para 45, European Court of Justice, ATI EAC and others, Case C-331/04, 24 November 2005, para 22.
- 25.
Case law concerning public procurement and non-discrimination: European Court of Justice, Concordia Bus Finland, Case C-513/99, 17 September 2002, para 63, European Court of Justice, Commission v. Germany, joined cases C-20/01 and C-28/01, 10 April 2003, para 62, European Court of Justice, Unitron Scandinavia, Case C-275/98, 18 November 1999, para 29, European Court of Justice, Commission v. France, Case C-264/03, 20 October 2005, para 32, European Court of Justice, Telaustria, Case C-324/98, 7 December 2000, para 60–61, European Court of Justice, Hospital Ingenieure Krankenhaustechnik Planungs GmbH, Case C-92/00, 18 June 2002, para 47, European Court of Justice, Bent Mousten Vestergaard, Case C-59/00, 3 December 2001, para 20, European Court of Justice, Commission v. Denmark, Case C-243/89, 22 June 1993, para 33, 37–40, 45, European Court of Justice, Commission v. France, Case C-225/98 26 September 2000, para 50, European Court of Justice, Beentjes, Case C-31/87, 20 September 1988, para 29–30, European Court of Justice, Parking Brixen GmbH, Case C-458/03, 13 October 2005, para 48.
- 26.
See recital 2 and Article 2 and 3 of Directive 2004/18/EC. See European Court of Justice, Telaustria, Case C-324/98, 7 December 2000, para 60–62, European Court of Justice, Commission v. Belgium, Case C-87/94, 25 April 1996, para 54. For case law addressing preferential treatment of economic operators by contracting authorities see European Court of Justice, Commission v. Belgium, Case C-87/94, 25 April 1996, para 56, Court of First Instance, Adia Interim SA v. Commission, Case T-19/95, 8 May 1996, para 42 and 47. More specifically for the principle of transparency see European Court of Justice, Unitron Scandinavia, Case C-275/98, 18 November 1999, para 31, European Court of Justice, Commission v. Spain, Case C-214/00, 15 May 2003, para 53, C European Court of Justice, SIAC Construction, Case C-19/00, 18 October 2001, para 41, European Court of Justice, Hospital Ingenieure Krankenhaustechnik Planungs GmbH, Case C-92/00, 18 June 2002, para 45, European Court of Justice, Telaustria, Case C-324/98, para 61 and 62, European Court of Justice, Traunfellner, Case C-421/01, 16 October 2003, para 29, European Court of Justice, Parking Brixen GmbH, Case C-458/03, 13 October 2005, para 49, European Court of Justice, Universale-Bau and others, Case C-470/99, 12 December 2002, para 92.
- 27.
See Directive 2004/18/EC recital 3.
- 28.
As addressed in Directive 2004/18/EC.
- 29.
As addressed in Directive 2004/17/EC.
- 30.
See Directive 2004/17/EC recital 9.
- 31.
COM(2010) 2020, Brussels, 3 March 2010, Commission Communication, Europe 2020, a strategy for smart, sustainable and inclusive growth’.
- 32.
- 33.
Ramboll and HTW Chur (2011), p. 92.
- 34.
European Commission (2004) A report on the functioning of public procurement markets in the EU: benefits from the application of EU directives and challenges for the future, 03/02/2004, p. 20.
- 35.
Ramboll and HTW Chur (2011), p. 95.
- 36.
PWC (2013), p. 10.
- 37.
Bovis (2007), p. 229.
- 38.
See Article 29 of 2014/24/EU.
- 39.
See Article 46(1) of Directive 2014/24/EU.
- 40.
Dimitri et al. (2006), p. 215.
- 41.
See Article 46(2), Directive 2014/24/EU.
- 42.
See Article 58(3), Directive 2014/24/EU.
- 43.
Article 59, Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC [2014] OJ L 94/65.
- 44.
Article 61, Directive 2014/24/EU.
- 45.
Article 57, Directive 2014/24/EU.
- 46.
Article 57(3), Directive 2014/24/EU.
- 47.
Recital 126 Directive 2014/24/EU.
- 48.
Article 83, Directive 2014/24/EU.
- 49.
Tian (2001), p. 218.
- 50.
Wang and Zhang (2010), p. 26.
- 51.
For an account on the state of various procurement rules and associated problems see Tian (2001), p. 207.
- 52.
Cao (2013), p. 212.
- 53.
Intergovernmental Group of Experts on Competition Law and Policy, Geneva, 9–11 July 2012, Roundtable on ‘Competition Policy and Public Procurement’ Written contribution by China, p. 9, http://unctad.org/meetings/en/Contribution/ciclp2012_RT_PP_China_en.pdf. Last accessed 16 April 2015.
- 54.
Article 18 Government Public Procurement Law (GPL).
- 55.
Article 16 and 60 GPL.
- 56.
Wang and Zhang (2010), p. 47.
- 57.
Wang and Zhang (2010), p. 45.
- 58.
Article 19 GPL.
- 59.
Article 18 GPL.
- 60.
Article 7 GPL.
- 61.
Wang and Zhang (2010), p. 46.
- 62.
See Tian (2001), pp. 209–210.
- 63.
Wang and Zhang (2010), p. 47.
- 64.
Wang and Zhang (2010), p. 46.
- 65.
Article 9 GPL.
- 66.
See Cao (2013), pp. 211–224, for a critical assessment.
- 67.
The following treatment is based Cao (2013), pp. 211–224.
- 68.
Article 8(2) Interim Measure The Interim Measure on Facilitating the Development of SMEs in Government Procurement (Treasury document No. [2011]), jointly issued by Ministry of Finance and Ministry of Industry and Information Technology, on December 29, 2011 and effective on January 1, 2012.
- 69.
See also Cao (2013), pp. 218 and 220.
- 70.
Tian (2001), p. 215.
- 71.
See also the chapter by Shen and Philipsen contained in this book.
- 72.
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Weishaar, S.E. (2016). Striking an Uneasy Balance Between Competition and Market Integration: The Case of EU Public Procurement. In: Philipsen, N., Weishaar, S., Xu, G. (eds) Market Integration: The EU Experience and Implications for Regulatory Reform in China. China-EU Law Series, vol 2. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-48273-5_4
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