EU excludes Chinese companies from medical device contracts worth more than 5 million euros

The EU Commission announced its decision on Friday morning to exclude Chinese companies from EU public contracts for medical devices worth more than five million euros, prompting a sharp response from Beijing.

Earlier this month, EU countries voted in favor of such sanctions in response to the legal and administrative obstacles China had imposed on European companies.

"With these measures, we aim to create a level playing field for EU companies. We remain committed to dialogue with China to resolve these issues," said EU Commissioner Maroš Šefčovič on Friday.

This is the first case in which restrictive measures have been applied under the EU International Procurement Instrument (IPI) since its entry into force in 2022.

In a nine-month investigation concluded in January, the Commission found that 87% of China's public procurement procedures for medical devices were subject to discriminatory practices that placed European companies at a disadvantage in public tenders.

“China has implemented a multi-layered, comprehensive system of generally applicable preferences for the procurement of domestic medical devices, resulting in systematic discrimination against imported medical devices and foreign economic operators,” the Commission stated at the time.

The measure also includes an upper limit: in successful bids for public contracts, no more than 50 percent of the components may be of Chinese origin.

However, exceptions are provided for cases where no suitable non-Chinese alternative suppliers are available.

The Commission remains committed to dialogue with Beijing and is “ready to intensify contacts with the Chinese authorities to put an end to these discriminatory practices.”

"If China presents concrete, verifiable and satisfactory solutions that effectively address the concerns raised, the IPI framework allows for the suspension or repeal of the measures adopted," the Commission added.

In response to the decision, the Chinese Foreign Ministry stated that the EU, which “has always claimed to be the most open market in the world,” had “gradually moved toward protectionism.”

“This is a typical case of double standards,” the ministry spokesperson added during a regular press conference.

This move could have significant implications, as Chinese exports of medical devices to the EU doubled between 2015 and 2023.

(bms/om)