EU votes to curb Chinese medical devices, cites procurement bias

The European Union (EU) members on Monday voted to restrict imports of Chinese medical devices, delivering a blow to a key industry under Beijing’s high-tech manufacturing strategy.

 

The move comes after the EU, in its investigation, found that Beijing discriminated against foreign firms in procurement of medical devices. The probe alleged that 87 per cent of contracts contained “direct and indirect discrimination”, including prohibiting imported medical devices, the EU said, as quoted by Financial Times.

 

In response to the "discrimination", the vote will mandate European public authorities to exclude Chinese bidders from contracts worth more than €5 million for the next five years, the report added.

 

 

Notably, the high-performance medical devices are among 10 core industries in Beijing’s “Made in China 2025” plan, aiming to upgrade its manufacturing sector and become a global leader in high-tech industries like robotics, aerospace, and semiconductors.

 

This is also the EU’s first use of the International Procurement Instrument, a 2022 law aimed at ensuring equal access to public procurement markets.

 

Ready to talk to Beijing: EU

 

As the move is expected to escalate trade tensions between two major economies, EU trade commissioner Maroš Šefčovič had earlier said that he is willing to find a negotiated solution with Beijing. He is set to meet Chinese commerce minister Wang Wentao on Tuesday on the sidelines of the OECD Ministerial Council Meeting in Paris. 

 

Not a first

 

In recent months, trade tensions between the EU and China have escalated, with both sides taking a series of retaliatory measures. Last October, the EU announced the imposition of additional tariffs on electric vehicles (EVs) imported from China, citing concerns over alleged state subsidies that provide Chinese EV manufacturers with an unfair competitive edge in the European market. It also launched several anti-dumping and anti-subsidy investigations targeting a range of Chinese products, including plywood and tyres for cars and trucks.

 

In response, China has introduced anti-dumping duties on European brandy and initiated probes into pork and dairy imports from the EU. However, later it also stepped up its efforts to woo Europe, rolling back some sanctions on EU lawmakers as a goodwill gesture.