The resolution regarding medical devices arises amidst increased trade tensions with President Donald Trump’s United States, which has enacted customs surcharges on imports from various regions globally, including Europe.
On Friday, the European Union prohibited Chinese companies from participating in government purchases of medical devices exceeding five million euros ($5.8 million) as a countermeasure against the restrictions imposed by Beijing on access to its domestic market.
This latest action in the ongoing trade disputes between the 27-member bloc and China encompasses a broad spectrum of healthcare products, ranging from surgical masks to X-ray machines, which collectively represent a market valued at 150 billion euros within the EU.
“Our objective with these actions is to create a fair competitive environment for EU enterprises,” stated Maros Sefcovic, the bloc’s trade commissioner.
“We remain dedicated to engaging in dialogue with China to address these concerns.”
The European Commission indicated in a statement that this decision was made in response to China’s long-standing exclusion of EU-manufactured medical devices from government contracts in China.
Brussels reported that nearly 90 percent of public procurement contracts for medical devices in China were subject to exclusionary and discriminatory practices against EU companies.
In addition to prohibiting Chinese firms from significant state contracts, it was noted that “inputs from China for successful bids” would also be restricted to 50 percent.
Over the past three years, Brussels and Beijing have experienced conflicts across various economic sectors, including electric vehicles, the rail sector, solar energy, and wind turbines.
The ruling regarding medical devices arises amid escalating trade tensions with the United States under President Donald Trump, which has implemented customs duties on imports from around the globe, including Europe.
In recent years, the EU has opted for a more assertive approach to trade, enacting a comprehensive set of laws to better protect its businesses from unfair competition.
In April 2024, the commission initiated an investigation into Chinese public contracts for medical devices, marking the first use of a new mechanism established by the EU in 2022 aimed at securing improved access to foreign state procurement.
Conversely, China accuses Europe of engaging in protectionist practices.
Following a year of discussions, the commission responsible for overseeing trade policy for the 27 member states announced that it had not achieved any advancements in its dealings with China.
“The initiative aims to encourage China to stop its discriminatory practices against EU businesses and EU-manufactured medical devices, ensuring that EU companies receive the same level of openness that the EU extends to Chinese firms and products,” stated Brussels.
