The European Commission said late last week it will exclude Chinese suppliers from participating in government purchases of medical devices worth more than 5 million euros ($5.8 million).
In addition, no successful bids can have more than 50% of inputs from China.
The decision to limit Chinese companies in the European Union’s public procurement market is a response to China’s longtime exclusion of EU-made medical devices from Chinese government contracts, the commission said.
The action, which follows a vote by EU member states to support restrictions, is intended to incentivize China to end discrimination against EU companies, according to a statement.
“Our aim with these measures is to level the playing field for EU businesses,” Maroš Šefčovič, commissioner for trade and economic security, interinstitutional relations and transparency, said in the statement. “We remain committed to dialogue with China to resolve these issues.”
An investigation into China’s public procurement practices, launched last year as the first under the EU’s three-year-old International Procurement Instrument, concluded in January that China unfairly prevented EU-based medical device suppliers from accessing its market through policies that favored local companies.
Chinese exports of medical devices to the EU more than doubled between 2015 and 2023, the investigation found, while China erected barriers to 87% of its public medtech contracts. The concern was raised “repeatedly” with Chinese authorities without a satisfactory solution, the commission said, adding that it remains committed to talks to address China’s discriminatory practices.
The EU introduced the IPI in 2022 as a tool to promote access for EU companies in global public procurement markets.
