China retaliates against EU procurement ban with medical device imports restrictions

China’s finance ministry announced on July 6 that it will restrict government procurement of European Union (EU) medical devices valued over 45 million yuan ($6.3 million), in a direct response to EU trade measures that barred Chinese firms from major medical tenders.

The new rule, which took effect on July 6, also limits imports of medical devices from other countries if they contain EU-made components exceeding 50% of the contract’s value. However, products from European companies manufactured within China will not be affected, the finance ministry clarified, Caliber.Az reports per Reuters. 

This move follows rising tensions between the two economic powers, triggered by a series of tit-for-tat measures. Last month, the European Commission introduced a ban on Chinese companies participating in EU public tenders for medical devices worth €60 billion annually. The decision, taken under the EU’s International Procurement Instrument — active since 2022 — aims to ensure “reciprocal market access” after concluding that EU firms lacked fair access to Chinese procurement markets.

China’s response had been anticipated after its commerce ministry warned of “necessary steps” in reaction to the EU’s restrictions.

"Regrettably, despite China's goodwill and sincerity, the EU has insisted on going its own way, taking restrictive measures and building new protectionist barriers," the commerce ministry said in a separate statement on July 6. "Therefore, China has no choice but to adopt reciprocal restrictive measures."

The EU delegation in Beijing has not yet responded to requests for comment.

Meanwhile, trade tensions continue to escalate beyond the medical sector. On July 4, China imposed duties of up to 34.9% on European brandy imports, mainly targeting cognac from France. The tariffs will apply for five years and follow an investigation widely seen as Beijing's retaliation to the EU’s recent tariffs on Chinese-made electric vehicles.

Major French cognac producers, including Pernod Ricard, LVMH, and Rémy Cointreau, have been exempted from the duties — provided they adhere to an undisclosed minimum pricing policy set by China.

Despite the rising friction, the two sides are scheduled to hold a leaders’ summit in China later this month.

By Sabina Mammadli