China bans EU firms from bidding for medical equipment contracts

China bans EU firms from bidding for medical equipment contracts

China has retaliated against the European Union (EU) by banning its companies from bidding on large-scale medical equipment contracts.

The move comes after the EU imposed restrictions on Chinese firms in medical device procurements, citing unfair practices.

The ban covers a wide range of products, including surgical instruments, medical machinery, and prosthetics.

Exclusionary measures

China's finance ministry has announced that EU-based firms, except those with established European capital operating within China, will be excluded from Chinese public procurement orders worth over CNY 45 million ($6.3 million).

The move comes just days after the EU restricted Chinese companies from government medical device procurements of over €5 million.

Response to EU's justification for restrictions

The European Commission's earlier restrictions on Chinese companies were justified as a response to "exclusionary and discriminatory measures" imposed by Beijing.

Brussels claimed that almost 90% of medical procurement contracts in China systematically excluded EU products.

In response, China criticized EU's step as a demonstration of "double standards" and insisted that it had expressed willingness to resolve disputes through dialog.

China seeks to shore up ties amid US trade war

The ban on EU firms comes as China is seeking to shore up ties amid a trade war with the US.

The Asian giant has also imposed anti-dumping duties on European brandy, mainly affecting the French cognac makers, citing unfair pricing practices.

This follows the EU's decision to impose duties as high as 45% on Chinese-made electric vehicles.