The EU has banned Chinese companies from signing government contracts for medical equipment worth more than €5 million in response to restrictions imposed by Beijing on access to its own market.

The European Commission's measure, which covers a wide range of products from surgical masks to X-ray machines, is the latest salvo in trade tensions between the 27-nation bloc and China, AFP reported.

“Our goal with these measures is to level the playing field for businesses in the EU,” said European Trade Commissioner Maros Sefcovic.

“We remain committed to dialogue with China to resolve these issues,” he added.

The European Commission said the measure was “in response to the long-standing exclusion of EU-made medical devices from Chinese public procurement.”

Brussels claims that just under 90% of public procurement contracts for medical devices in China “have been subject to exclusionary and discriminatory measures” against EU companies.

In addition to Chinese companies being excluded from large public contracts, “the entry of successful bids from China” will also be limited to 50%, the statement said.

Over the past three years, Brussels and Beijing have clashed in a number of economic sectors, including electric vehicles, the railway industry, solar panels, and wind turbines.

The decision on medical devices comes at a time of heightened trade tensions with the US under President Donald Trump, who has imposed tariffs on imports from around the world, including Europe.

In recent years, the EU has decided to take a tougher stance on trade, adopting a wide range of legislative measures to better protect its companies against unfair competition.

In April 2024, the Commission launched an investigation into Chinese public procurement for medical devices, the first under the new mechanism introduced by the EU in 2022 to improve access to public procurement abroad.

China, on the other hand, accuses Europe of protectionism.

After a year of negotiations, the Commission, which manages trade policy on behalf of the 27 member states, said it had made no progress with China.

“The measure aims to encourage China to stop discriminating against EU companies and medical devices manufactured in the EU and to treat EU companies with the same openness that the EU treats Chinese companies and products,” Brussels emphasized. | BGNES