Shutting Out Chinese Companies from EU's Medical Device Tenders: A Reaction to Discriminatory Policies
EU withdrew contract opportunities for Chinese businesses
In an unprecedented move, Chinese companies will be barred from bidding on certain public tenders, primarily those for medical products worth more than €5 million. The EU Commission announced this new regulation as a means to leverage a sanctions tool that was introduced in 2022, aiming to address discrimination against European companies in public tenders across different nations [1][2][3][4][5].
The sanctions tool has been designed to encourage other countries to open their markets to European companies, or face consequences if they fail to do so [5]. According to EU data, the exports of Chinese medical products to the EU have more than doubled between 2015 and 2023. In contrast, China has erected formidable barriers to its own market, with nearly 90% of public tenders for medical products biasing towards domestic products and EU suppliers [5].
The EU's decision to ban Chinese companies will affect various medical devices and equipment, including devices for breathing, X-ray machines, sterilization equipment, wheelchairs, and bandages. The Commission has stated that they previously emphasized their intent to work with Chinese authorities but discussions did not result in a satisfactory compromise for the EU [5]. Exemptions will be made if only a single Chinese company applies for a tender [4].
This decision constitutes a reaction to China's restrictive and discriminatory practices, which pose challenges for EU firms in aspects such as opaque approval processes, discriminatory certification, price manipulation, and exclusive national interest clauses [1][2][5]. Additionally, bids involving Chinese components exceeding 50% will be limited to minimize dependency on China for medical device components [1][4].
The EU's decision to exclude Chinese companies from large tenders is expected to deepen trade tensions, potentially sparking retaliatory actions from China, and limiting cooperation in medical product trade and procurement between the EU and China [2][1]. This move underscores the EU's commitment to strategic autonomy in critical sectors like healthcare, as well as concerns about fair market access, reciprocity, and the political dimension of international procurement [2].
- The EU Commission's decision to bar Chinese companies from tenders valued over €5 million for medical products is a strategically bold stance, aiming to alter the current market landscape and encourage fairer employment and community policies in the finance sector, influencing the broader business environment.
- This measure, highlighting the EU's focus on combating discriminatory practices, may potentially trigger a cascade of events in the medical device industry, including responses from Chinese companies concerning their employment and business strategies vis-à-vis the European market.
