China retaliates against EU with reciprocal ban on medical-device procurement
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The news: China will impose reciprocal restrictions on the procurement of medical devices for companies based in the European Union, intensifying the trade spat between the two trading partners.
The numbers: From 6 July, EU-based companies will be barred from Chinese government procurement for select medical devices if the value is greater than 45 million yuan ($10 million).
Beijing’s move comes after the EU last month said it would curb Chinese manufacturers from accessing public procurement contracts worth over €5 million ($9 million), which will restrict Chinese companies from accessing around 60% of public spending in the field, an EU official told Bloomberg.
The context: The decision was announced by China’s Ministry of Finance on Sunday, which added that imports of medical devices from other countries that contain EU-made components worth over 50% of the contract value will also be restricted.
China’s Commerce Ministry said separately that: “Regrettably, despite China’s goodwill and sincerity, the EU has insisted on going its own way, taking restrictive measures and building new protectionist barriers.”
The Ministry of Commerce added that EU-funded companies that are based in China will not be impacted by the restrictions.
