China Retaliates Against EU with Medical Device Import Restrictions

In a strong response to the European Union’s recent procurement ban, China’s Ministry of Finance announced on Sunday that it will restrict government purchases of EU-made medical devices worth over 45 million yuan ($6.3 million).

The move follows the EU’s decision last month to block Chinese firms from bidding on EU public tenders worth 60 billion euros ($70 billion) annually, citing a lack of reciprocal access for European companies in China.

Tensions Escalate Between EU and China

Relations between Beijing and Brussels have become strained in recent months, particularly after the EU imposed tariffs on China-made electric vehicles and China launched an anti-dumping probe on EU brandy imports.

Responding to the EU’s procurement action, the Chinese Commerce Ministry said:

“Regrettably, despite China’s goodwill and sincerity, the EU has insisted on going its own way, taking restrictive measures and building new protectionist barriers.”
“Therefore, China has no choice but to adopt reciprocal restrictive measures.”

Broader Restrictions and Exemptions

China’s new rules also target non-EU countries if their medical devices include over 50% EU-origin components. However, the ministry clarified that these restrictions do not apply to products from European companies operating within China.

Upcoming Summit and Brandy Duties

These measures come ahead of a high-level EU-China summit scheduled for later in July. Meanwhile, China also announced on Friday tariffs of up to 34.9% on EU brandy imports, believed to be a response to the EV tariff dispute.

Top French cognac makers like Pernod Ricard, LVMH, and Remy Cointreau have reportedly avoided the new levies, provided they maintain a minimum selling price.

The EU has not yet officially responded to China’s new medical device restrictions.