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EU Accuses China of Unfair Practices in Medical Device Procurement

The European Union (EU) has accused China of discriminating against European medical device manufacturers in public procurement tenders. In a statement released Tuesday, the EU warned Beijing of potential "decisive action" if the issue cannot be resolved through diplomatic dialogue.

• By Newsdesk
• Brussels
• Jan 15, 2025

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The European Union (EU) has accused China of discriminating against European medical device manufacturers in public procurement tenders. In a statement released Tuesday, the EU warned Beijing of potential "decisive action" if the issue cannot be resolved through diplomatic dialogue.

This development comes amid escalating trade tensions between the two economic giants. The EU has launched several investigations into China's trade practices since 2024, prompting Beijing to retaliate with probes into EU products.

Findings of the EU Investigation

The EU’s inquiry, initiated in April 2023, marked the first use of its International Procurement Instrument, designed to ensure reciprocal access to public procurement markets. According to Maroš Šefčovič, the EU's Trade Commissioner, the investigation uncovered discriminatory practices that limit European producers' participation in Chinese government contracts.

"We have found clear evidence of discrimination against EU medical device producers in bids for public contracts," Šefčovič stated. "While we prioritize dialogue as the first step, we are prepared to take decisive action to defend fair competition."

The investigation revealed restrictions on European suppliers of critical medical devices, including X-ray machines, hearing aids, implants, crutches, bandages, and dentures. The European Commission has indicated that, should dialogue fail, it may restrict or exclude Chinese companies from the EU's public procurement market under existing regulations.

China's Response and Escalating Trade Frictions

China has criticized the EU's actions, describing them as "protectionist" and cautioning against potential damage to Europe's reputation. The probe is part of broader EU efforts to address trade imbalances and promote a level playing field in key industries.

In recent years, Brussels has targeted Beijing's subsidies for clean technology and other sectors, citing concerns about overreliance on cheaper Chinese products. These measures have already led to increased tariffs on Chinese electric vehicles, which the EU claims are unfairly supported by state subsidies.

In response, China has imposed countermeasures, including provisional tariffs on European brandy and anti-dumping measures on certain liquors. These tit-for-tat actions have heightened fears of a trade war, echoing broader global apprehensions about China's growing dominance in critical sectors.

Strategic and Economic Implications

The EU’s firm stance reflects broader concerns among Western nations about China's influence and potential security threats. Governments, including the United States, have expressed alarm over China's leadership in advanced technologies and its impact on global supply chains.

Amid these challenges, the EU is working to strengthen its competitiveness, particularly in the face of evolving trade dynamics with China and the United States. Brussels has emphasized compliance with World Trade Organization (WTO) rules, aiming to balance economic interests with its commitment to fair trade practices.

As the EU considers next steps, including potential restrictions on Chinese access to its public markets, the outcome of this dispute could have significant implications for global trade relations and the future of EU-China economic ties.

(With inputs from AFP)