China retaliates against EU, bans European medical devices

Bangkok: China announced Sunday that it will bar European medical device companies from participating in government procurement as a countermeasure to the European Union’s restrictions on Chinese products.

According to a Finance Ministry notice, European firms will be excluded from government contracts exceeding 45 million yuan ($6.28 million), with the move taking immediate effect. However, the restrictions will not apply to European companies that have manufacturing operations within China.

On Friday, China had also imposed anti-dumping duties on European brandy, particularly affecting cognac from France. While some major producers were granted exceptions, the duties are part of a broader pattern of trade tensions between China and the EU across several sectors.

China has expressed disapproval of tariffs imposed by various European countries on Chinese electric vehicles and has subsequently launched investigations into European pork and dairy imports.

In June, the European Union introduced a measure barring Chinese companies from participating in government purchases above €5 million ($5.89 million). The EU stated the step was intended to pressure China into removing what it described as “significant and recurring legal and administrative barriers to its procurement market”.

In return, China stated it had “no choice but to implement countermeasures”.

“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,” said a statement from a spokesman with the Ministry of Commerce. “Unfortunately, the EU has ignored China's goodwill and sincerity and still insisted on taking restrictive measures and building new protectionist barriers.”

(inputs from PTI)