China has introduced new restrictions on the import of medical devices from the European Union, targeting government procurement contracts valued above 45 million yuan (approximately $6.3 million).
This action comes as a direct response to the European Union’s recent decision to exclude Chinese companies from bidding on EU public tenders for medical devices, a move that aimes to address concerns over market access and fairness.
Trade relations between China and the EU have grown increasingly tense over the past year. The European Union imposed tariffs on electric vehicles manufactured in China, citing issues such as unfair subsidies and limited market openness. In retaliation, Beijing levied duties on imported European brandy, notably French cognac, indicating a pattern of reciprocal trade measures.
The latest dispute centres on the medical devices sector, a critical and lucrative market. The European Commission announced last month that Chinese firms would be barred from participating in EU public procurement tenders for medical devices worth around €60 billion annually. This decision was enacted under the EU’s International Procurement Instrument, which came into force in 2022 to promote reciprocal access to public contracts and counteract discriminatory practices.
China’s Ministry of Finance revealed on Sunday that government agencies would be prohibited from purchasing medical devices from the EU if the contract value exceeds 45 million yuan. Additionally, China will restrict imports of medical devices from other countries if the products contain EU-made components accounting for more than 50% of the contract’s value. These measures took effect immediately.
“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 Ministry of Commerce stated. “Therefore, China has no choice but to adopt reciprocal restrictive measures.”
It is important to note that medical devices produced by European companies operating within China will not be affected by these restrictions, reflecting China’s attempt to balance retaliation with maintaining foreign investment.
In addition to the medical devices dispute, China recently imposed anti-dumping duties of up to 34.9% on EU brandy imports, primarily targeting French cognac. However, major producers such as Pernod Ricard, LVMH, and Remy Cointreau have been exempted, provided they comply with undisclosed minimum pricing conditions.
These escalating trade measures come just weeks before a scheduled summit between the leaders of China and the European Union, where economic cooperation and trade frictions are expected to be key topics.
Experts suggest these developments could have wider implications for global supply chains, particularly in the medical technology sector, where cross-border components and manufacturing are deeply integrated. The restrictions may prompt companies to reconsider their sourcing and production strategies to mitigate risks associated with geopolitical tensions.