EU bans Chinese firms from major medical device tenders

The EU Commission will exclude Chinese companies from public contracts for medical devices worth more than five million euros. The measure is intended to "encourage China to end its unequal treatment of medical devices manufactured in the EU," the Commission said on Friday. This affects a wide range of healthcare products, from masks and bandages to machines and robots.

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The dispute over trade in medical devices has been simmering for months. In January, the EU Commission accused Beijing of discriminating against EU manufacturers of medical products – from bandages to X-ray machines – with a series of regulations when selling in China. The EU's now-imposed restrictions are considered retaliatory measures and, according to Brussels, are intended to have as similar an effect as possible to the Chinese legislation.

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This marks the first time the Commission has introduced new trade law to address unfair trade with other countries. "Our goal with these measures is to create a level playing field for EU companies. We remain committed to dialogue with China to resolve these issues," said EU Trade Commissioner Maros Sefcovic.

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China responded by accusing the EU of applying double standards. "The EU has always boasted of being the most open market in the world, but in reality, it has gradually moved toward protectionism," said Guo Jiakun, spokesperson for the Foreign Ministry in Beijing. "Under the guise of fair competition," the EU "conducts unfair trade, which is a typical case of double standards."

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According to allegations from Brussels, Beijing is requiring Chinese hospitals to source at least 70 percent of their medium- and high-end medical equipment from China. China has consistently denied the allegations and, in turn, accuses the EU of protectionism.

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China and the EU are important trading partners, but relations are strained. Conflicts exist in sectors such as the automotive, electronics, steel, and solar cells industries. Brussels has adopted a tougher stance in recent years and created a comprehensive body of legislation to better defend EU companies against alleged unfair competition.