China hits reciprocal curbs on EU medical device contracts

Beijing has announced new restrictions on European Union medical device firms, marking a sharp escalation in trade tensions over market access for government procurement contracts. According to a statement from China’s Ministry of Finance, companies based in the European Union will face restrictions on participating in government procurements for certain medical devices valued over 45 million yuan ($6.3 million). The new measures will take effect on Sunday.

As reported by Bloomberg, the move is described as a reciprocal measure responding to recent European Union actions aimed at limiting Chinese companies’ access to lucrative public tenders for medical equipment within the bloc.

EU’s procurement restrictions

The European Union in June agreed by a wide margin to introduce limits on Chinese medical device manufacturers seeking public procurement contracts in Europe. According to Bloomberg, people familiar with those discussions said the EU aimed to curb Chinese firms’ market share, citing concerns over unfair competition and limited reciprocal access for European companies in China.

This EU policy move was seen as part of a broader strategy to level the playing field, given that European suppliers have often struggled to win large-scale Chinese government contracts despite Beijing’s own firms having significant sales opportunities in Europe.

China calls its move ‘reciprocal’

China’s finance ministry labelled its new policy as reciprocal curbs, highlighting what it views as an imbalance in market access. The ministry’s statement underlines Beijing’s increasing willingness to retaliate directly against what it sees as protectionist policies targeting its exporters.

The ban will apply to government procurements exceeding 45 million yuan for designated categories of medical devices, although the finance ministry did not publicly specify which devices would be affected.

Rising trade tensions

The procurement fight adds to a growing list of economic tensions between China and the European Union, ranging from clean-technology subsidies to electric vehicle tariffs. The EU has launched several trade investigations targeting Chinese products, including probes into subsidies for EV manufacturers, moves that Beijing has criticised as discriminatory.

As per Bloomberg, the latest procurement restrictions signal that China is willing to hit back sector by sector if European governments move to shut Chinese companies out of their own markets.

Outlook for EU–China trade ties

This tit-for-tat approach is expected to further complicate trade negotiations between Brussels and Beijing. European officials have insisted their measures are about ensuring fair competition rather than blanket protectionism, but China has accused the EU of politicising trade. The new procurement rules mark a significant symbolic shift as well: for years, European companies have called for greater access to China’s vast government procurement market, which remains tightly controlled despite Beijing’s pledges of openness.

As the new Chinese restrictions take effect this week, both sides appear to be hardening their stance, making any swift resolution to these procurement disputes increasingly unlikely.

(With inputs from the agencies)