On Friday, June 20, the European Commission announced that the European Union will ban Chinese (CCP) companies from participating in public tenders for medical equipment projects valued at €600 billion (approximately $689 billion) or more, citing unfair market access for EU companies in China.
This move is the first action taken by the EU under the International Procurement Instrument, which came into effect in 2022 to ensure reciprocity in market access.
The new restrictions could escalate tensions with Beijing. Previous actions by the EU, such as imposing tariffs on Chinese electric vehicles and China’s countermeasures against EU brandy, as well as restrictions on rare earth exports, have sparked friction. The EU hopes to address these issues at the EU-China summit scheduled for July.
The European Commission also announced on Friday that Chinese companies will be excluded from EU government procurement projects exceeding €5 million.
An EU official stated that according to data from Medtech Europe, the EU’s medical technology market in 2023 was around €160 billion, with public procurement accounting for 70% of it. The official mentioned that tenders exceeding €5 million represent only 4% of the total, but constitute 60% in value.
The winning bidder will be required to ensure that no more than 50% of the purchased medical equipment comes from China. However, this requirement does not apply if there are no alternative suppliers.
Earlier this month, EU member states expressed their support for the plan.
The European Commission previously stated that “clear evidence” indicates that China tends to favor domestic equipment in medical procurement, and the unusually low bid conditions make it difficult for profit-oriented companies to compete.
An EU official noted that the regulations will cover medical equipment including imaging devices, artificial organs, and medical apparel.
The Chinese Ministry of Commerce has criticized the proposed EU measures as “protectionist,” urging the EU to act fairly and transparently and to resolve differences through cooperation and dialogue.
The European Commission stated that although China has not proposed any corrective measures to address this issue, an agreement could still be reached.
(This article referenced reports from Reuters and MedTech Europe)