EU excludes Chinese companies from medical contracts – what now?

EU excludes Chinese companies from medical contracts – what now?

Chinese companies will now be excluded from certain European Union public contracts. Orders for the procurement of medical products, including masks, bandages, machines and robots, are particularly affected. The background to this decision is the allegations that China imposes discriminatory conditions on European companies in government tenders. This information was reported when the topic was discussed on the Deutschlandfunk program on June 20, 2025 Deutschlandsfunk.

The EU relies on a sanctions instrument that came into force in 2022 that allows European institutions to punish countries that act unfairly against EU companies. China has been accused of forcing hospitals to purchase at least 70 percent of their mid- and high-end medical equipment from domestic sources. However, China has rejected these claims.

Discrimination against EU manufacturers

A recent investigation has found that restrictions imposed by China are severely affecting EU medical device manufacturers' access to Chinese public contracts. According to a report prepared under the EU's International Procurement Instrument (IPI), various forms of discrimination exist that make the playing field unfavorable for European companies. This discrimination not only affects specific products, but extends to all categories of medical devices manufactured in China.

EU Trade Commissioner Maroš Šefčovič emphasizes the need for fair and open trade relations with China, based on mutual understanding. The EU Commission plans to take measures to restore a level playing field between the EU and China. This is supported not only by current market conditions, but also by increasing Chinese exports of medical devices to the EU, which increased by more than 100 percent between 2015 and 2023. The International Procurement Instrument (IPI) was launched on August 29, 2022, and the first investigation was launched in April 2024.

Outlook on possible measures

The EU remains open to constructive dialogue with China to reduce discriminatory practices. However, if no agreement is reached, the Commission will examine possible steps that could go as far as excluding Chinese bidders from EU contracts. The measures would have to be specific, proportionate and efficient, taking into account potential supply problems. The transparency and accessibility of the EU public procurement market is one of the largest and most important factors in the global trading environment Representation of the European Commission in Germany.