The European Union will block Chinese medical device suppliers from public contracts worth EUR 5 million or more, marking the first use of the bloc’s International Procurement Instrument to counter what it calls discriminatory trade practices, according to a press release. The restrictions also limit Chinese-made devices to no more than 50% of any contract value when other suppliers submit bids, and will remain in place for five years with the possibility of a five-year extension.
The EU introduced the International Procurement Instrument in 2022 to push for reciprocal access to public procurement markets in third countries. When a country’s procurement procedures contain discriminatory measures against EU businesses, the bloc can restrict access to its own public contracts for goods, services and suppliers from that country.
The European Commission launched an investigation into Chinese market practices in April 2024, finding that China favors domestic devices and services while restricting imported goods through administrative measures. The Commission also found that China imposes unreasonable purchasing terms, including requirements for companies to share technology with Chinese partners. Negotiations with Beijing to eliminate these practices failed to reach an acceptable solution.
A Commission report published in January found that 87% of China’s public procurement procedures for medical devices contain terms that restrict or discriminate against imported goods. These measures affect the entire Chinese territory and all medical devices, the report concluded, creating barriers that hurt EU businesses trying to access China’s public procurement market.
