The European Commission on Friday announced the exclusion of Chinese firms from participating in large-scale public procurement contracts for medical devices across the European Union.
The decision marks the first implementation of the EU’s 2022 International Procurement Instrument, IPI, designed to level the playing field for European companies operating abroad.
According to the Commission, the restriction applies to public health contracts valued above €5 million (approximately $5.7 million) and targets a broad range of medical devices, including ventilators, diagnostic machines, sterilisation units, X-ray scanners, wheelchairs, and dressings.
The move comes in response to what the EU described as “longstanding and systematic discrimination” against European suppliers in China’s public procurement processes.
“Nearly 90% of public tenders in China for medical devices systematically disadvantage EU suppliers,” the Commission said in a statement. “Despite our repeated diplomatic engagement, the barriers remain firmly in place.”
The Commission added that while Chinese exports of medical devices to the EU have more than doubled between 2015 and 2023, EU firms continue to face excessive entry restrictions, opaque licensing processes, and biased regulatory hurdles when trying to access China’s vast healthcare market.
The EU’s action is designed not only as a punitive measure but also as a pressure tactic to force China to ease market restrictions.
The IPI regulation allows the EU to limit access to its procurement markets if a third country’s own policies restrict EU companies from fair competition.
“This response is proportionate and strategic,” said Thierry Breton, EU Commissioner for Internal Market. “It protects the integrity of our public health system while promoting reciprocal trade access. We are not closing doors; we are asking for fairness.”
Exceptions will be granted where no viable alternatives to Chinese products are available, ensuring that critical healthcare services are not disrupted.
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Member states will be able to apply for waivers in specific cases, especially in emergencies or supply shortages.
China has yet to formally respond to the EU’s move, but trade experts anticipate retaliatory measures may be forthcoming. The Chinese Ministry of Commerce previously criticized the IPI as a “protectionist tool in disguise.”
The development is the latest chapter in a series of trade disputes between the EU and China, covering sectors ranging from steel and electric vehicles to solar panels and telecom infrastructure.
Analysts say it signals the EU’s growing willingness to assert its economic interests in the face of perceived unfair practices by major trading partners.
The medical devices market in the EU is worth over €140 billion annually and plays a vital role in healthcare delivery across the continent.
The exclusion of Chinese firms from high-value contracts is expected to open new opportunities for domestic and other foreign suppliers who meet EU standards and offer reciprocal market access.
As tensions simmer, the EU has reiterated its openness to renewed negotiations but insists that “real progress, not promises,” is needed from Beijing.
NAN
