EU opens investigation into Chinese medical device procurement

7 months ago 32

The European Commission announced on Wednesday (24 April) it has opened an investigation into Chinese discrimination against European companies in the public procurement market for medical devices.

The investigation will be conducted under the auspices of the International Procurement Instrument (IPI) – the first time that the tool, which entered into force in 2022 after being proposed by the EU’s executive body in 2012, has ever been used.

“Evidence gathered by the Commission indicates that China’s procurement market for medical devices has gradually become more closed for European and foreign firms, as well as for products made in the EU,” the Commission said in a statement.

The Commission added that it was compelled to wield the IPI after an “absence of satisfactory replies or actions” by Beijing. It noted that it hopes the measure will help “rebalance the EU-China trade relationship”.

Chinese exports of medical devices to the EU more than doubled between 2015 and 2023, according to Commission data.

The new probe was not triggered by any specific complaint but comes against the backdrop of persistent complaints that EU firms have been deprived of access to a market worth tens of billions of euros, Euractiv understands.

“Regrettably, our repeated discussions with China on this trade irritant have been fruitless,” said European Trade Commissioner Valdis Dombrovskis. “We trust that this IPI investigation will galvanise our dialogue and help us find mutually agreeable solutions”.

The EU executive will formally consult with the Chinese authorities and other stakeholders over the next nine to fourteen months, after which it will present its findings to the European Parliament and Council.

If the Commission concludes discrimination took place, it can lower the “score” of Chinese bidders for European public funds, which would lower the chances of such firms winning contracts. It could also ban Chinese firms from competing for EU public tenders entirely.

EU-China trade tensions have been mounting in recent months, with EU competition chief Margrethe Vestager announcing earlier in April the Commission would launch an anti-subsidy probe into Chinese sales of wind turbines to the EU.

This follows a similar EU investigation into Chinese electric vehicles announced by Commission President Ursula von der Leyen last September.

China responded in January by launching its own anti-dumping probe into brandy imported from the EU.

[Edited by Anna Brunetti/Zoran Radosavljevic]