A recent investigation by the European Commission revealed that China systematically discriminates against imported medical devices in its public procurement processes. In response, the EU is now considering countermeasures.
The Commission’s report indicates that China unjustly restricts EU medical device manufacturers’ access to government contracts. This investigation is the first conducted under the International Procurement Instrument to promote fair competition for EU companies pursuing international contracts and opportunities.
Trade Commissioner Maroš Šefčovič emphasised the EU’s dedication to promoting fair and transparent trade with China, particularly regarding public procurement. He pointed out, though, that this commitment should be reciprocal. Although non-EU businesses have opportunities to bid on EU contracts, European firms often face unfair barriers in China.
Belgium, France, Germany, Ireland, Italy, and the Netherlands are global leaders in exporting medical devices, including advanced X-ray machines, pacemakers, and everyday daily-use items.
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China’s Policy and Further Strategy
The investigation examined China’s government procurement law, which enforces the “Buy China” policy—this law prioritises domestic goods and services for government projects, with limited exceptions. The policy imposes complex certification processes, opaque approval systems, and pricing demands that are nearly impossible for foreign manufacturers to meet.
China’s “Made in China 2025” initiative intensifies this challenge, setting a target for hospitals to procure 70% of their mid-to-high-end medical devices from domestic sources by 2025. The results indicate a rising difficulty for EU-manufactured devices to enter the market.
For instance, in Guangdong Province, the number of “approved” imported devices fell from 132 in 2019 to 46 in 2021. Across China, 87% of procurement tenders between 2017 and 2024 included restrictions against foreign medical devices.
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What is Next for the EU?
The EU is now evaluating potential countermeasures to level the playing field. Such measures involve barring Chinese companies from competing for EU government contracts, imposing restrictions on specific tenders, or modifying scoring criteria to disadvantage Chinese bidders.
Despite these challenges, China remains a significant trading partner for Europe’s medical technology sector, accounting for 11% of exports in 2022. The EU has expressed its readiness to resolve the issue with China, presenting a bright outlook and being prepared to take decisive action if necessary.
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