China has retaliated against the European Union with a ban on high-value medical device imports from Europe in response to the EU's restrictions on China's participation in public healthcare procurement packages.
This measure marks an escalation in trade tensions between the two sides, as both the EU and China tighten regulations to reduce mutual dependence in strategic areas such as green technology, healthcare, and modern manufacturing.
MAIN CONTENT
China bans the import of EU medical devices valued at over 45 million yuan.
The EU applies International Procurement Law to restrict Chinese businesses.
The trade conflict between the EU and China is increasingly escalating, having far-reaching effects on the health and technology markets.
What measures has China taken regarding medical devices from the EU?
China announces a ban on the import of medical devices valued at over 45 million yuan (about 6.3 million USD) from the EU, while also restricting imports from third countries if they contain more than 50% components produced in the EU.
The Ministry of Finance of China stated that this is a necessary move to counter the EU's restrictions on Chinese companies participating in public healthcare procurement packages in the EU. This measure officially takes effect from July 6, 2025.
China states: "We are compelled to implement reciprocal measures to protect national interests after numerous unresponded diplomatic calls."
Ministry of Finance of China, July 2025
This policy does not affect the goods of European companies operating in China, focusing on countering direct export shipments.
Why is the EU limiting China's participation in healthcare procurement packages?
The EU applies the International Procurement Instrument (IPI) law to protect the interests of European manufacturers when they do not have fair access to the Chinese medical device market – the largest and most attractive market in Asia.
According to the EU, European companies are continuously denied the opportunity for fair competition in China, while the EU medical device industry contributes about 70 billion USD each year. This is the basis for the EU to claim that restrictions on China in bidding are justified and necessary.
How are trade tensions between China and the EU evolving?
Tensions between the EU and China have been escalating since last month when the EU imposed additional tariffs on Chinese electric vehicles to limit distorted competition due to government subsidies. In response, China launched an investigation and imposed tariffs as high as 34.9% on shipments of brandy imported from the EU, especially French cognac.
The policy banning the import of EU medical devices further clarifies China's determination to protect the domestic market and shows strong resistance to EU restrictions.
"China has no choice but to implement reciprocal restrictive measures in response to EU actions."
Statement from the Ministry of Commerce of China, July 2025
Currently, the EU has not provided an official response; however, the upcoming EU-China summit scheduled to take place in China in July 2025 will be an important point for both sides to discuss economic issues, climate change, and global security amid increasing tensions.
What is the impact of these measures on medical device manufacturing companies in Europe?
The new restrictions from China significantly impact European businesses, especially those that primarily rely on government supply contracts. They are forced to consider relocating production to China or seeking alternative markets to mitigate risks.
Conversely, the EU's continued exclusion of Chinese companies from public healthcare procurement packages in the region reinforces market barriers, making competition in this sector increasingly fierce.
How long could the retaliatory measures between the EU and China last?
Based on current developments, reciprocal retaliatory measures and restrictions are expected to continue, especially as the second and third largest economies in the world increasingly move toward self-sufficiency and reducing economic dependence.
International economists forecast that these measures will remain in place at least until after the EU-China summit in 2025, and could last longer if the two sides do not reach a clear cooperation agreement.
Frequently Asked Questions
How much is China banning the import of EU medical devices? China halts imports of medical devices worth over 45 million yuan (about 6.3 million USD) from the EU.
What tool does the EU use to restrict China in healthcare procurement? The EU implements the International Procurement Instrument (IPI) starting in 2022 to promote fairness and retaliate against the Chinese market.
How does this import ban affect European companies? Many medical device manufacturing companies in Europe may lose significant contracts from China and need to consider diversifying production or export markets.
When can both sides resolve trade tensions? The EU-China summit in July 2025 is an important dialogue opportunity but may not immediately resolve tensions.
Does the policy banning the import of medical devices affect the products of European companies in China? This policy does not apply to products from EU companies manufacturing in China.
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