China announced on Sunday that European medical device companies will be banned from selling to the Chinese government as a retaliatory measure against the European Union’s restrictions on similar Chinese products.
According to a notice from China’s Finance Ministry, European companies will be excluded from government procurement contracts valued above 45 million yuan (about $6.28 million). However, this ban does not apply to European firms that have invested in China and manufacture products domestically. The restrictions took effect immediately.
This action follows China’s recent imposition of anti-dumping duties on European brandy, particularly French cognac, announced last Friday. While some exceptions exist for major brandy producers, tensions between China and the EU span multiple industries. China protested after several European countries imposed tariffs on Chinese electric vehicles and has since launched investigations into European pork and dairy imports.
In June, the EU introduced measures excluding Chinese companies from government contracts exceeding 5 million euros (approximately $5.89 million), aiming to pressure China to stop discriminating against EU firms. The EU accused China of maintaining “significant and recurring legal and administrative barriers” in its procurement market.
China responded by saying it was compelled to adopt countermeasures.
A spokesperson from China’s Ministry of Commerce said, “China has repeatedly expressed its willingness to resolve differences with the EU through dialogue, consultations, and bilateral procurement agreements. Unfortunately, the EU ignored China’s goodwill and continued with restrictive policies and new protectionist barriers.”
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