EU probe finds ‘unfair’ limits in China’s medical device market, adding to trade rift

Brussels is considering which punitive measures to take after investigation concludes Beijing is restricting public procurement market

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EU trade commissioner Maros Sefcovic says Brussels is “ready to take decisive action” to support fair competition following an investigation into China’s public procurement market for medical devices. Photo: EPA-EFE

Published: 6:58pm, 14 Jan 2025Updated: 10:54pm, 14 Jan 2025

An EU investigation has found discrimination against European companies in China’s public procurement market for medical devices, opening up a new front in the bilateral trade dispute.

A report published on Tuesday found “clear evidence of China limiting the access of EU medical devices producers to its government contracts in an unfair and discriminatory way”.

The report came after the conclusion of the first and so far only investigation under the European Union’s international procurement instrument (IPI).

The European Commission is now considering which punitive measures to take. It will first ask for consultations with China. But under the terms of the instrument, it could eventually enforce “restrictions on or exclusion of Chinese bidders of government contracts in the EU”.

The measures will be decided upon by the commission in consultation with the bloc’s 27 member states, and will apply to tenders valued at more than €5 million (US$5.1 million). The members will vote on any proposed action.

The IPI was adopted in June 2022, but the first investigation was opened in April of last year after lengthy consultations with Beijing failed to lead to an opening in China’s public procurement markets in the lucrative medical devices sector.