The EU intends to prevent Chinese companies from participating in EU public tenders for medical devices worth 60 billion euros or more (equivalent to 68.9 billion dollars) annually, after concluding that EU companies are not given fair access to China.
The measure announced by the European Commission on Friday is the first under the EU's international procurement instrument, which came into effect in 2022 and is designed to ensure mutual access to markets.
New restrictions are likely to increase tensions with Beijing, fueled by tariffs imposed by the European Union on electric cars manufactured in China, Chinese measures against European brandy, and restrictions on rare earth metal exports that the EU wants to resolve through a summit between the EU and China in July.
The Commission stated on Friday that it would exclude Chinese companies from EU government purchases exceeding five million euros.
An EU official stated that the medical technology market in the EU was valued at around 150 billion euros in 2023, with public procurement accounting for 70 percent.
The official said that contracts worth more than 5 million euros accounted for only 4 percent of total bids, but represented about 60 percent in terms of value.
Successful bids must ensure that the share of Chinese medical devices does not exceed 50 percent, and if there are no alternative suppliers, the exclusion will not be enforced. EU member states supported the plan earlier this month.
The Commission had previously mentioned that it found 'clear evidence' that China favors Chinese devices for hospitals, and that the terms of its tenders led to abnormally low bids, which profit-driven companies were unable to match.
A Commission official said that the ban would include medical equipment, including imaging devices, prosthetic body parts, and medical clothing.
The Chinese Ministry of Commerce had previously described the proposed measures by the EU as 'protectionist,' urging the EU to act fairly and transparently, and to resolve disputes through cooperation and dialogue.
The Commission added that China has not proposed any corrective action to address the situation, but reaching an agreement is still possible.