Chinese firms warn EU procurement curb could hurt trade ties
[BEIJING] A Chinese business lobby group warned that EU actions to curb access of the country's medical device makers to government contracts in the bloc will hurt trade ties.
The China Chamber of Commerce to the EU expressed 'profound disappointment' over the EU's use of a trade tool to limit Chinese companies' participation in public procurements, according to a Monday (Jun 2) statement from the Chinese group.
'Its targeted application against Chinese enterprises sends a troubling signal-not only adding new complexity to China-EU economic and trade relations, but also contradicting the EU's stated principles of openness, fairness, and non-discrimination in market access,' said the organisation, whose members include the Bank of China, Cosco Shipping Holdings and BYD.
The dispute threatens to add another irritant to relations just as Beijing seeks to shore up ties with the EU, positioning itself as a more reliable partner as US President Donald Trump alienates the bloc over issues from tariffs to defence.
Chinese Commerce Minister Wang Wentao is due to meet with EU trade officials early this month in Paris, where he may address the bloc's trade grievances including a lack of fair access to China's own procurement market. European leaders will travel to Beijing for a summit next month with their Chinese counterparts.
The EU curb represented the first use of its International Procurement Instrument, a 2022 law that's meant to promote reciprocity in access to public procurement markets. It allows the EU's executive arm to impose various restrictions on firms seeking to participate in procurements, ranging from score adjustments in tenders to an outright ban from contracts.
The EU launched an investigation into China's procurement of medical devices last April, with the probe finding in January that Beijing discriminated against foreign firms. Consultations failed to find alternative solutions, Bloomberg previously reported.
The Chinese commerce chamber argued that market reciprocity must be based on 'an accurate understanding of historical and practical realities'.
'For years, European medical device companies have enjoyed significant access to the Chinese market, playing a key role in supporting the modernisation of China's healthcare system and achieving substantial growth,' it said. 'The EU's current decision fails to acknowledge this context and undermines the spirit of balanced engagement and mutual benefit.' BLOOMBERG
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
23 minutes ago
- Business Times
Oil settles 1% lower after US data shows large builds in fuel stocks
[HOUSTON] Oil prices settled down just over 1 per cent on Wednesday after US data showed surprisingly large build in petrol and diesel inventories, swelling fuel supplies with Opec+ planning more output and trade tensions clouding the energy demand outlook. Brent crude futures closed down 77 cents, or 1.2 per cent, at US$64.86 a barrel. US West Texas Intermediate crude settled 56 cents, or 0.9 per cent lower at US$62.85. US petrol stocks swelled by 5.2 million barrels, the Energy Information Administration said. Analysts polled by Reuters had expected a rise of 600,000 barrels. Distillate stockpiles rose by 4.2 million barrels compared with expectations for a rise of 1 million barrels. Crude inventories dropped by 4.3 million barrels. Analysts polled by Reuters had expected a draw of 1 million barrels. 'The report is in my view bearish, due to large builds in refined products,' Giovanni Staunovo, an analyst with UBS. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'There was a strong increase in refinery demand for crude, resulting in a large crude draw. But post-Memorial Day, the strong supply increase with weaker implied demand resulted in large refined product inventory increases,' he added. Plans by Opec+ producers to increase output by 411,000 barrels per day (bpd) in July were also weighing on investors. On Tuesday, both benchmarks climbed about 2 per cent to a two-week high, driven by worries about supply disruptions and expectations that Opec member Iran would reject a US nuclear deal proposal key to easing sanctions. Russia posted a 35 per cent decline in May oil and gas revenue, which could make Moscow more resistant to further Opec+ output hikes, as such moves weigh on crude prices. On Tuesday, the Organisation for Economic Co-operation and Development (OECD) cut its global growth forecast as the fallout from Trump's trade policies takes a bigger toll on the US economy, which would in turn impact oil demand. Meanwhile, US President Donald Trump and Chinese leader Xi Jinping are likely to speak this week, days after Trump accused China of violating a deal to roll back tariffs and trade curbs. US economic activity has declined and higher tariff rates have put upward pressure on costs and prices in the weeks since Federal Reserve policymakers last met to set interest rates, the central bank said in its latest snapshot of the economy. Geopolitical tensions continued to escalate. Russian President Vladimir Putin told Trump that he must respond to high-profile Ukrainian drone attacks on Russia's nuclear-capable bomber fleet and a deadly bridge bombing that Moscow blamed on Kyiv. 'Overall, we see limited upside potential amid ongoing concerns about a supply glut and softening demand growth,' analyst Ole Hansen at Saxo Bank said in a note. Meanwhile, production operations in Canada, some of which was shut-in due to wildfires, were restarting on Wednesday. Canadian Natural Resources said it has restarted its Jackfish 1 oil sands site in northern Alberta after determining wildfires in the region were a safe distance away. Wildfires in Canada had reduced the country's output by some 344,000 bpd, according to Reuters calculations on Tuesday. REUTERS
Business Times
23 minutes ago
- Business Times
US: Stocks mixed on slower hiring, economic uncertainty
[NEW YORK] Wall Street stocks closed mixed on Wednesday on signs that US economic activity was cooling, even though investors were careful not to overreact to a slowdown in private sector hiring. The Dow Jones Industrial Average slipped 0.2 per cent to 42,427.74, while the broad-based S&P 500 Index was flat at 5,970.81. The tech-heavy Nasdaq Composite Index added 0.3 per cent to 19,460.49. Data from payroll firm ADP showed private sector employment growing by 37,000 jobs in May, sharply below expectations of 115,000 according to a consensus forecast. But markets shrugged off the figures for now. 'Lower interest rates and the thought of the (Federal Reserve) responding sooner rather than later to signs of a weakening economy have acted as underpinning factors,' said analysts from in a note. On Wednesday, the Fed also noted that 'economic activity has declined slightly' in its latest 'Beige Book' survey of economic conditions. It flagged household and business caution due to heightened uncertainty surrounding US President Donald Trump's policies and slower hiring as well. Markets could have eked out some gains nonetheless on hopes that Trump would eventually reach a trade deal with Chinese President Xi Jinping to resolve a tariff battle launched by Washington, said Peter Cardillo of Spartan Capital Securities. AFP
Business Times
23 minutes ago
- Business Times
US economic activity ebbs, prices rise in Fed's Beige Book
[NEW YORK] Economic activity declined slightly in the US in recent weeks, indicating tariffs and elevated uncertainty are rippling across the economy, the Federal Reserve said in its Beige Book survey of regional business contacts. 'All districts reported elevated levels of economic and policy uncertainty, which have led to hesitancy and a cautious approach to business and household decisions,' according to the report published on Wednesday (Jun 4). Prices increased at a 'moderate' pace in the US, the report said. Moreover, 'there were widespread reports of contacts expecting costs and prices to rise at a faster rate going forward'. A few regions expected these increases to be 'strong, significant, or substantial'. The report noted that firms with plans to pass along tariff-related costs to consumers expect to do so within three months. US President Donald Trump has imposed levies on many US imports and threatened even higher tariffs on key US trade partners. This week, he doubled tariffs on steel and aluminium. The ultimate shape and scale of tariffs remains highly uncertain. Mentions of tariffs came up 122 times in the Beige Book, compared with 107 in the prior report. Variations of the word 'uncertain' appeared 80 times. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The Federal Reserve Bank of St Louis compiled the latest edition of the Beige Book using information gathered on or before May 23. The report includes commentary and anecdotes from business leaders and other contacts in each of the Fed's 12 regional districts. Fed officials next meet Jun 17 to 18. Most regions described employment as 'flat', and there were widespread comments about uncertainty delaying hiring. All districts noted weaker demand for labour. Wages continued to grow at a 'modest' pace. The report said the outlook remains 'slightly pessimistic and uncertain,' similar to the previous Beige Book. District highlights
