China Retaliates Against European Union Device Manufacturers

Growing China-EU Trade Conflict

The medical device industry is now the latest battleground in a growing China-EU trade conflict – with potential ripple effects across global supply chains and health procurement markets.

The AP reports that in an escalating trade dispute, China has barred European medical device companies from participating in government procurement contracts over 45 million yuan ($6.28 million). The ban, announced Sunday by China’s Finance Ministry, took effect immediately and is seen as retaliation for European Union trade restrictions on Chinese products.

Key Details:

• The ban applies only to non-Chinese-manufactured EU products.
• EU firms that produce within China are exempt.
• It mirrors a June EU policy excluding Chinese companies from public procurement over €5 million.

Broader EU-China Trade Tensions

• On Friday, China imposed anti-dumping duties on European brandy, particularly affecting French cognac.
• China is also investigating EU pork and dairy imports following EU actions targeting Chinese electric vehicles (EVs).
• The EU claims China’s procurement process discriminates against foreign firms, citing legal and administrative barriers.

China’s Response

China’s Ministry of Commerce said it had shown goodwill and willingness to negotiate but accused the EU of ignoring diplomatic overtures and erecting new protectionist barriers.

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