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Brussels/Beijing, 7 July 2025 – Trade relations between the European Union and China have further deteriorated following Beijing’s announcement of new restrictions on EU medical device imports, intensifying a tit-for-tat dispute over public procurement access.
China’s Ministry of Commerce declared on Sunday that it will limit government purchases of EU-made medical devices valued above 45 million yuan (€5.3 million). The move directly responds to the European Commission’s June decision to bar Chinese firms from bidding on EU public contracts exceeding €5 million, and to cap Chinese-sourced components at 50% of contract value.
“The EU has ignored China’s goodwill and sincerity and continues to impose restrictive measures and build new protectionist barriers,” said a ministry spokesperson.
🔁 A Pattern of Reciprocal Trade Measures
This latest escalation follows:
- China’s anti-dumping duties of up to 34.9% on European brandy imports
- A six-month extension of China’s investigation into EU pork imports
- The EU’s imposition of up to 45% tariffs on Chinese electric vehicles (EVs)
These developments come ahead of the EU-China Summit, scheduled for late July in Beijing, where both sides are expected to address mounting trade frictions.
🏥 Industry Reaction and Market Uncertainty
MedTech Europe, the EU’s medical devices industry association, expressed concern over China’s retaliatory measures, warning they could delay patient access to critical technologies and deepen trade tensions.
“We urge both the European Union and China to engage in constructive dialogue to resolve current challenges to market access,” the group stated.
The European Chamber of Commerce in China echoed these concerns, citing regulatory ambiguity and the risk of overly strict enforcement by local authorities. Although Beijing indicated that European-invested enterprises may be exempt, the criteria remain unclear, raising fears that even localized EU manufacturers could be excluded from tenders.
🔍 Underlying Dispute
The EU’s restrictions stem from its International Procurement Instrument (IPI), designed to counter discriminatory practices against EU firms abroad. The Commission cited evidence that 87% of Chinese public procurement contracts for medical devices exclude or disadvantage EU suppliers.
