EU Bans Chinese Firms from Lucrative Medical Equipment Contracts Over Market Discrimination

The European Union has barred Chinese companies from bidding on government contracts for medical equipment worth over €5 million ($5.8 million), escalating trade tensions with Beijing over market access and procurement fairness.

The European Commission announced the decision on Friday, stating it was a direct response to China’s ongoing restrictions that largely shut out European medical device makers from its public procurement market.

The ban covers a wide range of medical equipment—including surgical tools, diagnostic machines, and X-ray devices—within a sector valued at around €150 billion across the EU.

“Our aim with these measures is to level the playing field for EU businesses,” said EU Trade Commissioner Maroš Šefčovič. He emphasized that the bloc remains open to dialogue with Beijing to resolve the long-standing issue.

According to the Commission, nearly 90% of Chinese public tenders for medical equipment either exclude or heavily disadvantage EU-made products. In addition to the procurement ban, the EU will now cap Chinese content in successful bids at 50%.

The move comes after a year-long investigation launched in April 2024—the first under the EU’s 2022 regulation that enables reciprocal restrictions on foreign firms when European companies face unfair barriers abroad.

Brussels said negotiations with China yielded no progress, prompting the new restrictions. “The measure seeks to incentivise China to end discriminatory practices and ensure EU firms are treated with the same openness we extend to Chinese companies,” the Commission said.

China has frequently criticized the EU for what it calls protectionist policies, as the bloc continues to tighten its trade rules in sectors ranging from green technology to infrastructure.

The timing of the EU’s action also reflects broader global trade frictions, as the United States under former President Donald Trump imposed tariffs affecting both Chinese and European imports, fueling further economic uncertainty.