China strikes back at EU with procurement ban on medical devices

China’s Finance Ministry has announced new restrictions on government purchases of European Union medical devices exceeding 45 million yuan ($6.3 million), in direct retaliation to Brussels’ recent curbs targeting Chinese suppliers.

The tit-for-tat move underscores escalating tensions between the world’s second- and third-largest economies, following the European Commission’s decision last month to bar Chinese firms from bidding in EU public tenders for medical devices valued at over €60 billion ($70 billion) annually. Brussels justified the ban by citing limited market access for European firms in China, Caliber.Az reports, citing Western media.

The EU measure marked the first implementation of the International Procurement Instrument, a regulation that came into effect in 2022 aimed at enforcing reciprocal market conditions.

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

In addition to limiting direct purchases, China will also block imports of medical devices from non-EU countries if more than 50% of their contract value is comprised of EU-origin components. The restrictions took effect on July 6.

However, the Chinese Commerce Ministry clarified that the new rules do not apply to products from European companies already operating within China.

The latest measure comes amid a broader trade spat between the two sides. On July 4, Beijing imposed anti-dumping duties of up to 34.9% for five years on EU brandy—mostly French cognac—in a move widely seen as retaliation for the EU’s tariffs on Chinese electric vehicles.

China and the European Union are scheduled to hold a leaders’ summit later in July, with growing economic frictions expected to dominate the agenda.

By Khagan Isayev