Steps taken against EU medical device curbs

China has taken relevant countermeasures targeting the procurement of certain medical devices imported from the European Union through government purchasing programs, according to a notice released by the Ministry of Finance on Sunday.

The move comes after the European Commission, the executive arm of the EU, introduced measures last month to restrict Chinese companies and products from taking part in its public procurement of medical devices.

The ministry notice stipulates that for procurement projects with a medical device budget exceeding 45 million yuan ($6.3 million), all EU enterprises — excluding EU-funded businesses operating in China — will be barred from participation.

The restrictions apply to medical devices such as surgical instruments, magnetic resonance imaging equipment, blood-based pharmaceutical preparations, orthopedic implant components and medical laser devices.

For non-EU companies involved in such procurements, the value of EU-imported medical devices must not exceed 50 percent of the total contract amount, the notice said.

However, these restrictions do not apply to projects in which only EU-imported medical devices can meet the procurement requirements, the notice added.

Also on Sunday, a spokesperson for the Ministry of Commerce said that China has repeatedly expressed in bilateral talks its willingness to properly address differences with the EU on government procurement through consultations and arrangements.

"Regrettably, the EU has ignored China's goodwill and sincerity, and proceeded with restrictive measures that create new protectionist barriers," the spokesperson said in an online statement. As a result, China is compelled to introduce reciprocal restrictions, the spokesperson said, adding that these measures are aimed at safeguarding the legitimate rights and interests of Chinese companies and ensuring a fair and competitive environment.

Noting that providing market access based on geopolitical considerations only erodes trust, Wang Qian, a researcher specializing in international trade at Shanghai University of International Business and Economics, said the two sides should resolve such disputes through dialogue and negotiations.

Cooperation, instead of tit-for-tat restrictions, is essential for maintaining fair market access and a stable global trade environment, Wang added.

Chen Jianwei, a researcher at the University of International Business and Economics' Academy of China Open Economy Studies in Beijing, said that for years, global medical device manufacturers, especially those in Europe, the United States and Japan, have benefited from access to the Chinese market.

"A fair and competitive environment is fundamental for driving continuous product innovation and advancing the development of free trade," Chen said.

Data from the Commerce Ministry shows that the actual use of foreign direct investment in China's high-tech industries reached 109.04 billion yuan between January and May. The FDI in the chemical pharmaceuticals manufacturing sector surged 59.2 percent year-on-year, while FDI in the medical instrument and equipment manufacturing sector increased 20 percent.