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China-EU relations
ChinaDiplomacy

EU targets China medical technology market with launch of new procurement weapon

  • First probe launched under international procurement instrument will look into access for European device manufacturers
  • Chinese officials have previously lashed out at ‘protectionist acts’ in the name of fair competition

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European access to China’s medical technology market, worth an estimated US$144.5 billion, is in the sights of a new EU tool. Photo: Xinhua
Finbarr Berminghamin Brussels
The European Union launched the first investigation under its international procurement instrument (IPI) on Wednesday in order to explore access to the Chinese market for its medical device manufacturers.

The landmark investigation has been years in the making. The IPI was adopted in June 2022 with the aim of prising open lucrative foreign procurement markets that are closed to EU firms.

The probe will almost certainly add a new wrinkle of tension to already fraught EU-China trade relations. Chinese officials have previously lashed out at “protectionist acts that harm the fair competition environment in the name of fair competition”.
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A note published in the EU’s official journal said China’s rules favoured local suppliers in its procurement markets.

It pointed to a “buy China” policy, the Made in China 2025 strategy that directs hospitals to procure an increasing level of domestically-made medical devices, and regulations that stipulate that local authorities must procure domestic products.

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It bemoaned the “more stringent rules for the procurement of imported products compared to the procurement of domestic ones”, and accused the government of “imposing conditions in its centralised procurement of medical devices leading to abnormally low bids that cannot be sustained by profit-oriented companies”.

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