EU Restricts chinese Access to Medical Equipment Market Amid Trade Tensions

Brussels has barred Chinese manufacturers from participating in high-value public procurement tenders for medical equipment, escalating trade tensions between the European Union and China. The move signals a significant shift towards protecting the EU market and demanding reciprocity in trade relations.

EU Tightens Trade Policy: A Push for Reciprocity

For years, the EU has championed free trade and globalization. However, there’s a growing sentiment in Brussels that unilateral market openness is no longer enduring. The recent action against Chinese medical equipment companies underscores the EU’s increasing focus on reciprocity and protective measures in its trade policy [[2]].

Did You Know? The EU’s trade with China reached nearly €740 billion in 2023, highlighting the importance of this economic relationship despite ongoing tensions [[2]].

Prohibition on Chinese Medical Companies: A Result of Unsuccessful Negotiations

The EU’s decision prohibits Chinese companies from participating in public tenders exceeding $5 million when those contests involve medical equipment. This includes essential items like surgical masks, advanced diagnostic devices, and X-ray machines, impacting a market estimated at around $150 billion euros.

The European Commission stated that this decision followed prolonged, unsuccessful attempts to ensure EU companies gained access to the Chinese market. Reportedly, 90% of public procurement processes in China are structured to discriminate against EU manufacturers.

The Activation of the International Procurement Instrument (IPI)

This marks the frist time the EU has employed the International Procurement Instrument (IPI), a measure adopted in 2022. The examination into China’s practices began in April 2024,and after a year of negotiations,the European Commission concluded that no progress had been made.

The new regulations not only prevent Chinese companies from participating in large tenders but also limit the proportion of Chinese-origin components to no more than 50% of the proposal’s value.

Beijing Accuses EU of Protectionism

Goo Jaakun, a spokesperson for the Chinese Foreign Ministry, criticized the EU, accusing it of hypocrisy and protectionism. He argued that the EU, while presenting itself as an open market, is increasingly resorting to protectionist measures. “After fair competition, the veil of the EU pursues an unscrupulous policy – an example of double standards,” he stated.

European Commissioner Maroš Šefchovich defended the decision, emphasizing that the objective is to provide equal conditions for EU manufacturers.He affirmed that the EU remains open to dialogue with China [[1]].

Escalating Trade Tensions Across Multiple Sectors

These measures are part of a broader pattern of trade tensions between the EU and China. Recent years have seen conflicts arise in sectors such as electric vehicles, solar and wind energy, and the railway industry.

The European Commission emphasizes that the new prohibition serves as an incentive for China to reform its policies and cease discriminating against EU companies, thereby ensuring a level playing field for both sides [[3]].

pro Tip: Businesses should closely monitor EU trade policy updates and diversify their supply chains to mitigate risks associated with these evolving trade dynamics.

EU-China Trade: Key Figures

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