European Union member states have endorsed a European Commission proposal to restrict Chinese medical device manufacturers from participating in EU public procurement tenders, following findings of systemic barriers faced by European firms in accessing China’s public markets.
The proposed measures, adopted under the EU’s International Procurement Instrument (IPI), mark the first use of the trade reciprocity framework designed to counter unfair access conditions in third-country procurement markets. The Commission’s decision follows an investigation launched in April 2024, which concluded that Chinese public tenders consistently favoured domestic suppliers.
“There is clear evidence that China has imposed discriminatory procurement practices, resulting in unfair competitive advantages for Chinese companies,” an EU diplomat said.
Under the IPI, Chinese suppliers could face a five-year exclusion from high-value EU tenders or be subjected to a competitive disadvantage through penalty scoring—provided that any enforcement action remains “proportionate,” in line with EU legal standards.
Mounting Trade Tensions
The European Commission did not publicly disclose the final voting outcome or detailed content of the proposal but confirmed that member states had reviewed the measure on Monday. If implemented, the restrictions would significantly impact Chinese firms bidding in the EU’s €2 trillion public procurement market.
Beijing has strongly condemned the initiative. In a statement issued Tuesday, China’s Ministry of Commerce labelled the proposal as “protectionist,” warning that it undermines fair competition and raises new trade barriers.
“China will closely monitor the EU’s actions and will take necessary measures to protect the legitimate interests of Chinese enterprises,” the ministry said, urging Brussels to resolve the dispute through dialogue and cooperation.
The China Chamber of Commerce to the EU echoed similar concerns, expressing “profound disappointment” and arguing that European firms have enjoyed substantial market access in China.
Findings from the EU Investigation
A January 2024 Commission report revealed that 87% of the reviewed Chinese public tenders included direct or indirect restrictions against imported medical devices. The most affected categories included ENT (ear, nose, and throat) equipment, diagnostic imaging tools, and general-use diagnostic devices.
The report also noted a rise in explicit bans on foreign devices in Chinese tenders between 2022 and 2024. Despite the findings, Chinese authorities have yet to propose corrective actions, according to EU officials.
Diplomatic Engagement Continues
As trade frictions escalate—including EU tariffs on China-made electric vehicles and retaliatory actions on EU brandy—discussions between high-level officials are ongoing. EU Trade Commissioner Maroš Šefčovič is scheduled to meet Chinese Commerce Minister Wang Wentao in Paris this week, in an attempt to de-escalate tensions and seek constructive pathways.
The European Commission has maintained that it remains open to negotiations, which could avert the imposition of the new procurement restrictions.
“Now more than ever, constructive dialogue is essential to avoid a fragmentation of global markets,” said one EU official familiar with the matter.
