**China-EU Trade Tensions Escalate**
The trade tensions between China and the European Union have escalated further. Following the EU’s decision to restrict Chinese medical equipment companies from participating in bidding due to China’s discriminatory rules, Beijing announced retaliatory measures, banning the procurement of certain medical equipment from the EU.
The Chinese Ministry of Finance announced on Sunday (July 6) that as of July 6, EU companies will be excluded from certain medical equipment valued at over 45 million yuan (about 6.3 million US dollars, 5.3 million euros) procured by the Chinese government.
For bids from companies outside the EU, Beijing requires that no more than 50% of the contract total shall come from EU imports.
At the same time, the Chinese Ministry of Finance stated that this retaliatory measure “does not apply to projects where medical devices imported solely from the EU are necessary to meet procurement requirements.”
Moreover, the new restrictions will not affect tender notices or results that have already been announced.
The Chinese Ministry of Commerce also stated in a separate declaration that medical equipment produced in China by companies funded by the EU will not be affected by these restrictions.
According to Agence France-Presse, the products covered by this new measure range from prosthetic devices and components to medical machinery, surgical instruments, endoscopes, and artificial organs.
Previously, an EU investigation showed that 95% of EU tender bids are open to the rest of the world, but European businesses in China could hardly secure any public contracts from the Chinese government.
Subsequently, on June 20, Brussels decided to exclude Chinese company products from its public orders for medical equipment above 5 million euros to compel China to “end discrimination against medical equipment produced in the EU.”
On July 4, China also announced anti-dumping duties on European brandy while exempting the major cognac manufacturers that agreed to the minimum price level. This action was taken in retaliation after the EU decided in 2024 to impose tariffs of up to 45% on electric cars from China.
In recent years, trade conflicts between Brussels and Beijing have been increasing and intensifying in various sectors such as electric vehicles, railway industry, solar panels, and wind turbines.
The EU has recently changed its previous strategy of concession and adopted a tougher stance by enacting a significant amount of legislation to better protect EU companies from unfair competition from China.