Trade war: China reacts with counter-sanctions against EU medical products!

Trade war: China reacts with counter-sanctions against EU medical products!

The trade conflict between the EU and China and the associated sanctions are increasing in intensity. In June 2023, the EU decided to partially exclude Chinese providers from public tenders for medical devices. This was done as part of an initiative aimed at reducing distortions of competition. On June 20, 2023, the EU Commission decided to exclude Chinese providers from tenders for medical devices worth over 5 million euros. The affected products include, among other things, apparatus and devices for ventilation, X-rays, sterilization, as well as wheelchairs and dressing materials such as plasters.

As an immediate response to these measures, China has decided on counter-sanctions. Since last Sunday, EU companies have been excluded from tenders for medical equipment in China worth over 45 million yuan, equivalent to about 5.3 million euros, according to the Beijing Ministry of Commerce. What is striking is that only medical devices imported from the EU are affected, while products from EU companies that produce in China are not subject to any restrictions.

Accusations of double standards

Beijing has accused the EU of showing double standards in its approach and describes the measures as protectionist. This is happening against the background that the EU Commission justifies its exclusion of Chinese providers with unequal competitive conditions. European providers experience disadvantageous conditions in almost 90 percent of tenders in China.

The EU Commission has highlighted the application of a sanction instrument introduced in 2022 against discriminatory procurement practices as a significant step. The exclusion of Chinese suppliers is just the beginning of responding to the unequal conditions in international trade in medical devices.

Measures for equality in international trade

A report from the first investigation under the EU's Instrument for International Procurement (IPI) shows that China is unfairly restricting EU medical device manufacturers' access to government contracts. EU Trade Commissioner Maroš Šefčovič emphasizes the need to maintain open and fair trade relations with China and plans measures to restore a level playing field.

The EU remains open to constructive dialogue with China to reduce discrimination. Possible future steps could also include restricting or excluding Chinese bidders from public contracts in the EU. The report also highlights that China has introduced a number of discriminatory measures against EU medical products and suppliers, significantly hindering access to the Chinese market.

In contrast, current figures show that exports of medical devices from China to the EU increased by more than 100 percent between 2015 and 2023, thus underlining the growing importance and complexity of the market. Maintaining competitive conditions in international procurement remains a key concern for the entire EU.

For more information you can read the articles from Süddeutsche.de and germany.representation.ec.europa.eu be consulted.