EU Bans Chinese Medical Device Firms From Major State Contracts

In a bold move escalating trade tensions, the European Union has announced a ban on Chinese medical device companies from participating in government contracts exceeding five million euros ($5.8 million).

The measure, unveiled Friday, targets a healthcare market in the EU worth an estimated 150 billion euros and is aimed at addressing long-standing restrictions placed by Beijing on European firms.

EU Trade Commissioner Maroš Šefčovič emphasized that the decision is not about closing doors but about “leveling the playing field for EU businesses.” He noted the EU remains open to dialogue with China but stressed the need for fair competition.

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According to the European Commission, nearly 90% of China’s public procurement contracts in the medical sector effectively exclude or discriminate against EU-based manufacturers. The new regulation will not only bar Chinese companies from large state tenders but also limit the use of Chinese inputs in winning bids to a maximum of 50%.

This decision marks the EU’s first enforcement action under a 2022 regulation designed to counteract foreign market restrictions on public procurement. It follows the Commission’s formal investigation launched in April 2024 into China’s procurement practices—an investigation that yielded little progress after a year of talks.

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The move also comes against a broader backdrop of friction between Brussels and Beijing, with previous clashes in sectors such as electric vehicles, rail, solar panels, and wind energy. Tensions have been further inflamed by protectionist measures from the United States under President Donald Trump, adding pressure on global trade alliances.

Brussels maintains that this new measure is about reciprocity. “This action aims to prompt China to abandon its discriminatory approach and provide EU businesses the same market access that Chinese companies enjoy in Europe,” the Commission said in its statement.

As trade policies tighten and competition grows fiercer, the EU’s stance sends a clear message: access must be mutual, and fairness must be enforced.

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