Medical device trade restrictions ignite escalating EU‑China tensions.

EU‑China Medical‑Device Trade Friction Grows

EU’s Latest Procurement Limitations

The European Union has tightened its procurement rules for medical devices, effectively restricting the use of certain Chinese-made products in member‑state health systems.

China’s New Counter‑Measures

In response, Beijing has unveiled a series of retaliatory actions aimed at countering the EU’s restrictions.

Key Measures Announced by China

• Import Restrictions on EU Medical Equipment – Targeting specific EU brands and models.
• Tariff Adjustments – Increasing duties on EU medical devices entering the Chinese market.
• Export Licensing Review – Reassessing Chinese companies licensed to supply EU markets.
• Industrial Support for Domestic Alternatives – Encouraging local manufacturers to replace imported devices.

Implications for Global Health Supply Chains

The escalating trade dispute threatens to disrupt supply lines, potentially affecting patient care and healthcare costs across both regions.

Beijing Responds With Countermeasure to EU Restrictions on Medical Device Procurement

In a move that signals heightened tensions in EU‑China trade relations, Beijing announced on Sunday that it will impose limits on government purchases of medical devices originating from the European Union. The measure targets projects valued at over 45 million yuan (around €5.3 million). The decision follows the European Commission’s earlier policy that bars Chinese companies from bids on EU public contracts exceeding €5 million and caps Chinese component sourcing at 50 % for any winning bids.

Official Stance

• Countermeasure Necessity: The Chinese Ministry of Commerce stated that Beijing has “no choice but to implement countermeasures.”
• Dialogue and Cooperation: A spokesperson highlighted Beijing’s repeated outreach through bilateral talks, emphasizing the country’s willingness to resolve differences via dialogue, consultation, and joint procurement arrangements.
• Accusations of Protectionism: China’s statement accused the EU of continuing restrictive policies and building new protectionist barriers, undermining China’s expressed goodwill.

Context of Escalation

This latest step comes on the heels of Beijing’s imposition of anti‑dumping duties—up to 34.9 %—on European brandy imports for the next five years. China also extended its anti‑dumping investigation on EU pork imports by an additional six months. In response, the EU imposed tariffs of up to 45 % on Chinese electric vehicles.

Diplomatic Timeline

Amid these reciprocal actions, the EU‑China relationship is undergoing a cautious diplomatic reset. A pivotal moment is the upcoming EU‑China Summit scheduled for the second half of July 2025 in Beijing, which may set the stage for easing trade tensions.

Concerns from Europe

EU Medical Device Association Voices Fears on China’s Latest Policy

MedTech Europe, the umbrella group representing the European medical devices industry, has issued a statement expressing its disappointment with China’s newly announced restrictions. The association cautions that the move further limits European firms’ access to China’s public procurement arena.

Potential Risks for Patient Care

“These measures could intensify trade friction and jeopardise patients’ timely receipt of essential medical devices,” MedTech Europe stated in a formal release. The body also called for a constructive exchange between the European Union and China, urging both sides to address existing obstacles to market entry and to uphold mutually fair, predictable, and reciprocal trading conditions.

European Chamber of Commerce in China Echoes the Concerns

The European Chamber of Commerce in China (ECC China) added that the announcement induces growing uncertainty for European enterprises doing business in the country. Its analysis highlights that the opacity of the new rules may lead local authorities to enforce them more stringently than intended.

Implications for Localised European Producers

• The lack of clarity may prevent even highly localised European manufacturers from participating in public tenders.
• Although the Chinese authorities claim that “European‑invested enterprises” will be sheltered from the restrictions, the notice does not define what constitutes such an investment.
• The Chamber also notes uncertainty over whether volume‑based procurement tenders—often exceeding the threshold—will be subject to these rules.

Overall, the agencies urge both governments to engage in dialogue and seek a resolution that ensures a stable trade environment for the medical device sector.