China could retaliate after EU bars Chinese firms from medical device tenders

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BEIJING (Reuters) -China could take steps against the European Union after the 27-member bloc barred Chinese firms from most public tenders for medical devices, the commerce ministry said on Tuesday, keeping trade tensions high ahead of a key summit next month.

The European Commission said on Friday that Chinese companies would be prevented from bidding for public tenders worth 60 billion euros ($69.63 billion) or more after concluding that EU firms are not given fair access in the China.

“The European side has persisted in using unilateral tools to build new protectionist barriers, which not only harms the interests of Chinese enterprises, but also seriously undermines fair competition,” the ministry said in a statement.

“China will take necessary steps to resolutely safeguard the legitimate rights and interests of Chinese enterprises.”

The world’s second- and third-largest economies are due to hold a leaders’ summit in China next month, with EU tariffs on China-built electric vehicles, China’s probe into EU brandy imports and export curbs on the export of rare earths on the agenda.

The EU’s foreign policy chief Kaja Kallas called for a “dose of realism” in EU-China ties, in comments made to reporters on Monday in Brussels, and accused China of employing coercive trade practices and carrying out cyberattacks against the EU.

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(Reporting by Liz Lee and Joe Cash; Editing by Christopher Cushing and Rachna Uppal)