China retaliates against EU with a ban on European medical devices

BANGKOK: China said on Sunday that European medical device companies will be barred from selling to the Chinese government as a countermeasure to the EU’s restrictions on similar products from China.

European firms will be excluded from tenders where procurement budgets exceed 45 million yuan ($6.28 million), a notice from the finance ministry said on Sunday, with the measures effective immediately. The ban does not apply to European companies that have invested in China or manufacture goods within the country.

China on Friday imposed anti-dumping duties on European brandy, most notably French cognac. While exemptions cover major producers, China and the EU remain embroiled in multiple trade disputes across industries. Beijing protested after several European states levied duties on Chinese electric vehicles and has since launched investigations into European pork and dairy imports.

In June, the EU announced that Chinese firms would be excluded from government procurement contracts valued above 5 million euros ($5.89 million). The EU said the measure was designed to incentivise China to end its discrimination against EU companies, accusing Beijing of erecting “significant and recurring legal and administrative barriers” to its procurement market.

China said it had “no choice but to implement countermeasures”.

“China has repeatedly expressed through bilateral dialogue its willingness to handle differences with the EU through consultation and bilateral procurement arrangements,” a Ministry of Commerce spokesperson said. “Unfortunately, the EU has ignored China’s goodwill and sincerity and insisted on taking restrictive measures and creating new protectionist barriers.”

By RSS/AP