Latest news with #InternationalProcurementInstrument
Time of India
3 days ago
- Business
- Time of India
EU agrees reprisals against China over medical devices
Brussels: EU countries voted on Monday to exclude Chinese companies from selling medical devices in the bloc in reprisal for Beijing curbing European imports in the sector, diplomats said. The restriction was the first time the European Union has used its International Procurement Instrument , a 2022 regulation that allows reciprocal measures when it comes to public procurement. The move was likely to increase trade tensions between Brussels and Beijing at a time of broadened commercial volatility brought on by Washington's swingeing tariffs. An EU diplomat speaking on condition of anonymity said the bloc's move adopting restrictions suggested by the European Commission were proportional, without giving details. An EU investigation concluded in January that China discriminated against EU medical devices in its public procurement, including in state-owned hospitals. The China Chamber of Commerce to the EU in a statement expressed "profound disappointment over this decision". It said it had "serious concerns about the EU's move to limit Chinese enterprises' participation in the EU procurement market, particularly in the healthcare sector".
Epoch Times
3 days ago
- Business
- Epoch Times
EU Mulls Curbs On China's Medical Device Market
The European Union has considered backing a proposal to limit Chinese medical device suppliers' participation in bids for public contracts, after finding member states' companies were not given fair access to China's public tenders. The measures proposed on June 2 by the European Commission will be the first under the EU's International Procurement Instrument (IPI) regulation, adopted in 2022, which aims to ensure fair access for European companies to other countries' public contracts.
Yahoo
3 days ago
- Business
- Yahoo
Trump isn't Beijing's only trade headache, as the EU targets Chinese medical devices
Global investors are paying close attention to U.S.-China trade tensions this week. Tensions are simmering as Washington and Beijing accuse each other of undermining last month's agreement–and officials hint of a possible phone call between U.S. President Donald Trump and Chinese President Xi Jinping this week. But the U.S. isn't Beijing's only headache. On Monday, members of the European Union voted to block Chinese companies from bidding for public procurement tenders for medical devices for contracts valued over 5 million euros ($5.7 million) for the next five years. It's the first use of the EU's 'International Procurement Instrument,' a 2022 law designed to encourage reciprocity in overseas procurement markets. Brussels has accused China of systematically discriminating against European providers. A European Commission investigation in January found that 87% of sampled Chinese public tenders discriminated, directly and indirectly, against imported medical equipment. The China Chamber of Commerce to the EU called on Brussels to reconsider its decision, saying the measures add 'new complexity to China-EU economic and trade relations.' Medical devices are just one area where Brussels and Beijing are butting heads on trade. In October, the EU slapped tariffs of up to 45% on Chinese-made electric vehicles to combat what it deemed to be an unfair level of state subsidies. The EU has also opened anti-dumping and anti-subsidy investigations into wind turbines, wood flooring, trucks, and passenger car tires. Brussels is also monitoring whether China's exports are being rerouted to Europe after Trump imposed high tariffs on Chinese goods. It has previously flagged industrial overcapacity in China as a concern, fearing that a flood of cheap goods could threaten European industry. China has fought back with its own probes, specifically into European brandy, pork and dairy products. Some of China's neighbors are also worried about a flood of cheap goods from the world's second-largest economy. Those fears could spark a 'tariff cascade', as countries erect new import duties to protect their local industries. Vietnam and South Korea both imposed anti-dumping duties on Chinese steel earlier this year. This story was originally featured on
Arabian Post
3 days ago
- Business
- Arabian Post
Brussels' Procurement Clampdown Sparks Trade Tensions with Beijing
The European Union has enacted measures to restrict Chinese medical device manufacturers from participating in large-scale public procurement contracts, citing systematic discrimination against European suppliers in China's domestic market. This decision marks the first use of the EU's International Procurement Instrument , a mechanism designed to enforce reciprocal access to public tenders. Under the new directive, Chinese firms are barred from bidding on EU public contracts exceeding €5 million for a duration of five years. The European Commission's investigation revealed that 87% of Chinese procurement tenders contained explicit or implicit barriers against foreign medical devices. These barriers include complex certification requirements, opaque approval processes, and pricing structures that disadvantage non-domestic suppliers. The Commission's findings highlighted China's 'Buy China' policy and the 'Made in China 2025' strategy as central to these discriminatory practices. These initiatives aim to increase the share of domestically produced medical devices in Chinese hospitals, with targets set at 70% by 2025. Such policies have led to a significant reduction in the approval of imported medical devices in various provinces, notably in Guangdong, where approved imports dropped from 132 in 2019 to 46 in 2021. ADVERTISEMENT In response, the China Chamber of Commerce to the EU expressed strong concerns, arguing that the EU's measures could disrupt bilateral trade relations. The Chamber emphasized that European companies have historically enjoyed broad access to China's medical device market and warned against unilateral actions that might escalate tensions. The EU's decision aligns with its broader strategy to reduce dependency on external suppliers for critical goods, a policy often referred to as 'de-risking.' This approach seeks to ensure that European industries are not overly reliant on non-EU countries, especially in sectors deemed essential for public health and safety. Trade Commissioner Maroš Šefčovič is scheduled to meet with Chinese Commerce Minister Wang Wentao in Paris to discuss the implications of the new measures and explore potential resolutions. While the EU maintains that its actions are proportionate and aimed at restoring fair competition, it remains open to dialogue to address the underlying issues. The implementation of the IPI reflects the EU's commitment to enforcing fair trade practices and ensuring that European companies have equitable access to global markets. However, the move also underscores the growing complexities in EU-China trade relations, particularly as both parties navigate the challenges of balancing domestic interests with international obligations.
Business Times
3 days ago
- Business
- Business Times
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
