China Retaliates, Restricting EU Medical Device Sales
Trade tensions escalate as countermeasures target European firms
In a tit-for-tat escalation of trade disputes, **China** has announced restrictions on European medical device companies, mirroring the **European Union**’s limitations on Chinese firms. The move intensifies already strained relations across multiple sectors.
Key Development
**China**’s Finance Ministry declared Sunday that European medical device firms will be barred from selling to the Chinese government if procurement budgets exceed 45 million yuan (approximately $6.28 million). However, these restrictions won’t apply to European companies manufacturing goods within **China**.
EU Measures Prompt Response
According to a statement from a spokesman with the Ministry of Commerce, China feels it had “no choice but to implement countermeasures.”
The spokesman added that **China** had repeatedly expressed its willingness to resolve disputes through dialogue, but the **EU** had ignored “**China**’s goodwill and sincerity and still insisted on taking restrictive measures and building new protectionist barriers.”
Tit-for-Tat Retaliation
Previously, the **EU** revealed plans to exclude Chinese companies from government contracts valued above 5 million euros (about $5.89 million). The **EU** stated this action was designed to encourage **China** to eliminate discriminatory practices against European businesses.
This action follows **China** imposing anti-dumping duties on European brandy on Friday, particularly affecting French cognac. The U.S. Chamber of Commerce indicates that retaliatory measures are becoming increasingly common in international trade disputes, affecting businesses on both sides of the Atlantic (U.S. Chamber of Commerce).
Broadening Trade Disputes
The trade friction extends beyond medical devices and brandy. **China** previously protested against European duties on Chinese-made EVs and has launched investigations into European pork and dairy products.
Looking Ahead
The escalating trade disputes suggest a challenging path forward for **China**-**EU** relations. Both sides claim to seek resolution through dialogue, but the implementation of countermeasures indicates a growing divide and potential for further economic disruption.
