EU restricts Chinese medical device firms from public tenders

BELGIUM – The European Union has taken a major step to stop Chinese medical device companies from bidding on big public contracts.

This decision follows the EU’s finding that most Chinese tenders—approximately 87%—contained rules that hindered foreign companies’ ability to compete.

These findings pushed the EU to act under a trade rule known as the International Procurement Instrument.

This tool allows the EU to either block Chinese companies from applying for specific tenders or lower their scores during the selection process. These rules could apply for the next five years.

The European Commission made a proposal to EU member states, but hasn’t yet shared what was decided or what steps will come next. Still, officials stressed that any action must be fair and balanced.

According to the EU, China has made it difficult for European companies to sell medical devices there.

Local hospitals were encouraged to buy Chinese products, and bidding rules often led to extremely low prices that global companies couldn’t match. This unfair system prompted the EU to act to protect its companies.

The situation adds more tension to the growing trade conflict between the EU and China, which already includes disputes over electric vehicles and luxury goods like brandy.

China quickly responded by calling the EU’s move “protectionist.” Its Ministry of Commerce said the new restrictions were unfair and hurt Chinese companies.

It also warned that China will closely watch how the EU proceeds and will take steps to protect its own businesses.

As EU Trade Commissioner Maros Sefcovic met with China’s Commerce Minister Wang Wentao in Paris, Chinese industry leaders expressed deep disappointment.

The China Chamber of Commerce to the EU claimed that the EU’s decision ignores the considerable market access that European companies already enjoy in China.

They added that during a time of global trade tension, both sides should focus on cooperation rather than confrontation. They also criticized other countries for using one-sided trade measures that disrupt global business.

In January, the EU released a report showing a rise in restrictions on imported medical devices in China from 2022 to 2024.

The limitations were especially common in areas such as ENT (ear, nose, and throat), general diagnostics, and imaging equipment.

So far, China has not taken any action to fix the issue, but there’s still a chance both sides could come to an agreement and avoid full enforcement of the new EU rules.