Excludes Chinese Firms from Large EU Public Contracts for Medical Equipment due to Security Concerns
Title: Europe's Aggressive Moves Against China's Market Dominance in Medical Devices
The European Union (EU) isn't backing down from a fight, especially when it comes to fair competition. On a steamy Friday in June, the European Commission declared war on Chinese companies dominating the EU's medical device market, worth a staggering 150 billion euros.
Frustrated by China's persistent discrimination against EU-manufactured medical devices, the Commission decided to pull some serious strings. The decision? Exclude Chinese companies from bidding on public tenders for medical equipment worth more than 5 million euros.
Tensions have been escalating between Brussels and Beijing for years, with the U.S.'s trade war adding fuel to the fire. disputes raging over electric vehicles, railway industry, solar panels, wind turbines, and now, medical devices.
Unfair Competition Revealed
The EU has been gearing up for this battle, strengthening its weaponry with new legislation to protect its companies against unfair competition. In April 2024, the Commission launched an investigation into Chinese public markets for medical devices, the first under the new mechanism the EU established in 2022.
The EU claims that its public tenders are 95% open to global competition, while European firms face virtual exclusion from China's public markets. After a year of fruitless negotiations, the Commission, armed with trade policy authority for the 27 member states, decided to fight back.
The Battle Commences
"Fair conditions for EU companies" is the battle cry, with the EU Commissioner for Trade, Maros Sefcovic, vowing to continue dialogue with China to resolve the issues. However, the EU isn't shy about taking action. The new measures limiting Chinese offers in large public tenders for medical equipment and capping the Chinese component share in winning bids to 50% were met with immediate condemnation from China.
Guo Jiakun, a prominent Chinese diplomat, Branded the EU's approach as hypocritical, accusing the bloc of "two weights, two measures" and creeping protectionism. The EU counters that its actions are proportionate and aligned with World Trade Organization rules, and that the sanctions will not create shortages or unreasonable expense. Exemptions will also be provided for cases where there are no viable alternative suppliers.
The €5 million threshold covers approximately 60% of the European market for medical devices, sparing smaller hospitals with more modest purchasing power from added costs.
In the end, this is a fight for fair market access—a fight the EU is determined to win. As the medical technology market in the EU continues to grow, the EU is making it clear: it's game on.
Further Reading
For more in-depth analysis, check out our subscriber exclusive articles, such as "China-EU: The Impossible Economic Decoupling," available on our website with AFP. Remember, unity is strength—stand with us as we navigate this new territory together.
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- Given the ongoing disputes over various sectors, including medical devices, the European Union (EU) has launched an investigation into Chinese public markets for medical devices, aiming to combat unfair competition and protect EU-manufactured devices from virtual exclusion.
- With the decision to exclude Chinese companies from bidding on public tenders for medical equipment worth more than 5 million euros, the EU is engaging in general-news-worthy actions against China's market dominance in medical devices, directly impacting the politics of global trade.
