China announced on Sunday that it will bar European medical device companies from selling to the Chinese government if the procurement budget exceeds 45 million yuan ($6.28 million).
The move comes as a direct response to the European Union’s restrictions on Chinese firms, marking the latest escalation in ongoing trade tensions between the two major economies.
China-EU Trade War
The new restrictions, outlined in a notice from China’s Ministry of Finance, took effect immediately. However, the ban will not apply to European medical device companies that have invested in China and manufacture their products within the country.
The procurement restrictions follow a series of tit-for-tat trade measures between China and the EU. Just two days earlier, on Friday, China imposed anti-dumping duties on European brandy imports, targeting mainly French cognac producers. Although some major brandy producers received exemptions, the move signaled Beijing’s readiness to retaliate across multiple industries.
The EU and China have been locked in a growing number of trade disputes. Europe has raised concerns over a range of Chinese exports, including electric vehicles (EVs), and has imposed duties on Chinese-made EVs. In response, China has launched its own investigations into European pork and dairy imports.
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EU Acusses China Of Discrimination
The European Union’s decision in June to exclude Chinese companies from government procurement contracts exceeding 5 million euros ($5.89 million) was seen as a significant trigger for the latest Chinese countermeasures. The EU justified the measure by accusing China of discriminating against European firms through “significant and recurring legal and administrative barriers” in its procurement markets.
The EU said the restrictions were intended to push China towards fairer treatment of European businesses.
China Says It Has No ChoiceBbut to Implement Countermeasures
Beijing has defended its decision against EU , saying it was left with no alternative but to take reciprocal measures.
“China has repeatedly expressed through bilateral dialogues that it is willing to properly handle differences with the EU through dialogue and consultation and bilateral government procurement arrangements,” a spokesperson for China’s Ministry of Commerce said in a statement.
“Unfortunately, the EU has ignored China’s goodwill and sincerity and still insisted on taking restrictive measures and building new protectionist barriers,” the spokesperson added.
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Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
