Title: EU Alleges China's Preference for Homegrown Medical Products
The EU has levied accusations towards China, alleging discriminatory practices against European companies within medical sector tenders. EU Trade Commissioner Maros Sefcovic stated, "We've discovered China significantly discriminates against EU manufacturers of medical materials in public tenders." The Commission is now contemplating retaliatory measures in response.
Over the past year, Brussels conducted an investigation into whether China unfairly advantages its domestic companies within Chinese hospital tenders, utilizing a series of regulations. Recent findings indicate that Chinese products are often selected in preference. This applies across different medical material categories, including bandages to hearing aids, wheelchairs, and X-ray equipment.
According to the allegations, Chinese hospitals are required to acquire at least 70% of their medium and high-value medical equipment from Chinese sources by 2025. These tenders are designed in a manner that allows Chinese companies to offer unusually low prices, while foreign medical product imports are subject to restrictive measures.
Sefcovic emphasized the EU's continued efforts to negotiate with China to resolve this dispute. However, he warned that the Commission would not hesitate to enforce measures to preserve fair competitive conditions. In the absence of an agreement, Chinese companies may find access to public tenders in the EU more challenging.
So far, Beijing has dismissed the accusations from the EU and retaliated by accusing the EU of protectionism. China points to newly implemented laws for international public tenders, as well as a law aimed at preventing foreign unfair subsidies, many of which primarily concern Chinese companies.
China and the EU are significant trading partners, yet their relationship is strained. The EU accuses Beijing of excessively subsidizing manufacturers of renewable energy solutions, electric vehicles, and IT products. Last October, the EU imposed additional tariffs on Chinese electric vehicles due to questionable subsidies, prompting China to levy preliminary tariffs on brandy from EU member states.
Upon conclusion of a telephone conversation between Chinese President Xi Jinping and EU Council President António Costa, both sides expressed interest in strengthening their relationship and expanding openness. A joint statement published by China's state-run CCTV television station highlighted the need for both parties to expand mutual openness and strengthen strategic trust.
Sources:
- Euractive
- Euronews
- KUNA
[1] Euractive - "EU Trade chief Sefcovic warns of countermeasures against China in medical device row"[2] Euronews - "EU investigates alleged Chinese discrimination in medical sector tenders"[3] KUNA - "EU investigates Chinese medical equipment tenders for violating EU trade rules"[5] European Union - "Report on the functioning of the International Procurement Instrument"
Medical engineering companies in Europe may face challenges in participating in tender bids for medical equipment in China, given the allegations of discrimination and the requirement for Chinese hospitals to source a significant percentage of their medium and high-value medical equipment domestically.
In response to these accusations, the EU is considering imposing retaliatory measures to ensure fair competitive conditions for European medical engineering companies.
