EU backs curbs on Chinese medical device firms in public tenders

BRUSSELS (Reuters) -European Union governments have backed a proposal to limit Chinese medical device suppliers’ participation in bids for public contracts, after finding EU companies were not given fair access to China’s public tenders, EU diplomats said on Monday.

The measures proposed by the European Commission will be the first under the EU’s International Procurement Instrument, which is designed to ensure reciprocity, after the Commission launched an investigation in April 2024.

Under the instrument, the EU executive can exclude Chinese bidders from larger EU public procurement tenders or attach a penalty score to their bids for five years to tackle discrimination.

The European Commission confirmed it put a proposal to EU members on Monday but said it could not disclose the outcome of the vote, the content of its proposal or its next steps.

Under EU law, any measures must be “proportionate.”

The Commission has previously said it found “clear evidence” that China favoured Chinese devices for hospitals and its tender conditions led to abnormally low bids that profit-oriented companies could not offer.

The new restrictions are likely to increase tensions inflamed by EU tariffs on China-built electric vehicles and Chinese measures against EU brandy.

In a statement released on Tuesday, the Chinese Commerce Ministry described the EU’s plan as “protectionist”, urging the EU to be fair and transparent and for both sides to resolve differences through cooperation and dialogue.

China is firmly opposed to EU’s “discriminatory” measures which hurt Chinese firms and amount to using “unilateral tools to disrupt fair competition and building up new trade barriers”, it said.

“China will pay close attention to EU’s further actions and will take measures to firmly safeguard the legitimate interests of Chinese companies,” the ministry said.

EU Trade Commissioner Maros Sefcovic was due to meet Chinese Commerce Minister Wang Wentao in Paris on Tuesday, according to Sefcovic’s agenda.

The China Chamber of Commerce to the EU expressed “profound disappointment” about the decision, which it said failed to acknowledge the significant access European medical device firms had enjoyed in China.

“At a time when the global trade faces considerable uncertainty, and certain countries are resorting to unilateral tariff measures that disrupt global market order, China and the EU… should jointly uphold free trade,” it said.

A Commission investigation published in January found 87% of a sample of Chinese public tenders contained direct and indirect restrictions on imported devices. It also said explicit bans on imported devices in Chinese tenders rose from 2022 to 2024.

Restrictions primarily affected ear, nose and throat devices, such as those used to clear airways, general diagnostic devices and diagnostic imaging devices.

The Commission said China had not proposed any corrective action to remedy the situation. The two sides could still reach an agreement to avoid EU measures.

(Reporting by Philip Blenkinsop; Additional reporting by Antoni Slodkowski, Yukun Zhang and Xiuhao Chen in Beijing; Editing by Cynthia Osterman, Sonali Paul and Emelia Sithole-Matarise)