The European Union is preparing to impose restrictions on Chinese companies from participating in public procurement of medical devices, which could be the first strike against Beijing under a new European trade instrument. Bloomberg reports this with reference to sources familiar with the situation, Time Ukraine Israel cites.
EU member states are expected to vote on the proposal on Monday. If approved, the restrictions will be the first practical application of the Public Procurement Instrument (PPI) Regulation, adopted in 2022 to ensure equal access to the procurement market for countries that do not guarantee reciprocity.
“The European Union is sending a clear message: we will not tolerate unfair competition from Beijing,” European diplomats say.
China under the scrutiny of Brussels
In April, the European Commission launched an investigation into China’s discriminatory policy in medical tenders. According to officials, Beijing systematically favours state-owned companies by setting strict requirements for “local” production.
This allowed China to turn a trade deficit of €1.3 billion (2019) into a €5.2 billion surplus in 2020, according to an internal EU report.
New rules of the game: market protection or confrontation?
The IPI Regulation allows Brussels to restrict or ban the participation of foreign companies in tenders if their country does not guarantee similar access to European businesses. This may include lowering the scores of bids or banning them from participation altogether.
The introduction of such restrictions risks opening a new front in the trade confrontation between Brussels and Beijing, especially in the face of increased global competition from the United States.
Beijing is actively promoting the “Made in China 2025” strategy, which aims to secure 85% of the domestic market share for basic medical devices and 70% for high-tech ones. The EU considers this policy to be market-destructive and anti-competitive.
