China Retaliates Against EU on Medical-Device Procurement | Company Business News

China will impose some reciprocal curbs on medical-device procurement for companies based in the European Union, adding tensions between the two major trading partners just as Beijing seeks to shore up ties while it fights a trade war with the US.

Starting from July 6, EU-based companies will be excluded from Chinese government procurement for certain medical devices if the value is higher than 45 million yuan , according to a statement from the Ministry of Finance on Sunday. Products made by EU-funded companies in China are not impacted by the curbs, the Ministry of Commerce said in a separate statement.

China’s move came after the EU announced plans to restrict Chinese medical device manufacturers from accessing public procurement contracts worth more than €5 million . The measures will restrict Chinese companies from accessing around 60% of the public spending in this field, or around €150 billion, according to an EU official familiar with the plans. The bloc will also allow no more than 50% of inputs from China for successful bids.

Chinese exports of medical devices to the EU have more than doubled between 2015 and 2023, the European Commission said in a statement.

In another sign of tension between Europe and Beijing, the Chinese government intended to shorten a two-day summit with EU leaders this month to just a day, Bloomberg reported on Friday. China also announced anti-dumping duties on European brandy on Friday while exempting major cognac makers that agreed to minimum price levels. The action followed the EU’s decision in 2024 to levy duties as high as 45% on Chinese-made electric vehicles. 

European countries have complained that the Chinese government has failed to address overcapacity in sectors including steel, unfair subsidies and market access to its economy.

This article was generated from an automated news agency feed without modifications to text.