Latest news with #WangWentao
Arabian Post
11 hours 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
11 hours 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
Straits Times
12 hours ago
- Business
- Straits Times
Chinese firms warn EU procurement curb could hurt trade ties
The dispute threatens to add another irritant to relations between Beijing and the EU. PHOTO: REUTERS 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 statement from the Chinese group on June 2. '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 in June 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 in July 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 in April 2024, 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 Join ST's Telegram channel and get the latest breaking news delivered to you.
Russia Today
a day ago
- Business
- Russia Today
EU mulls blocking China's access to medical device procurement
The European Union is examining the possibility of imposing restrictions on public procurement contracts across the bloc for Chinese medical device producers, Bloomberg reported on Monday, citing a person familiar with the plans. Brussels and Beijing have recently been locked in an escalating tit-for-tat stand-off over trade protectionism. Earlier this year, the European Commission (EC) said that a probe launched last year into alleged unfair Chinese trade practices had revealed that Beijing has been limiting access for EU medical devices and suppliers to the Chinese procurement market. Last month, China's Ministry of Commerce announced that its anti-dumping investigation into brandy imports from the EU – initiated in response to a probe by the bloc – had been extended due to the complexity of the case. Members of the 27-nation bloc are expected to vote on the proposed measure on Monday, June 2, the unnamed source told Bloomberg. If approved, the step would mark Brussels' first action under the International Procurement Instrument (IPI), a regulation adopted in 2022 to promote reciprocity in access to public procurement markets, the news agency noted. The IPI enables the EC to introduce a range of restrictions on companies bidding for public contracts – from score adjustments in tenders to a full ban on participation. The news comes ahead of a meeting between the two sides' top trade officials. Maros Sefcovic and Wang Wentao are reportedly expected to meet on Tuesday on the sidelines of an Organisation for Economic Co-operation and Development (OECD) ministerial conference in Paris. If adopted, the restrictions could further fuel ongoing trade tensions between the EU and China, opening a new front in disputes between both parties, each of which is also engaged in mounting trade frictions with the US.
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Business Standard
a day ago
- Business
- Business Standard
EU votes to curb Chinese medical devices, cites procurement bias
The European Union (EU) members on Monday voted to restrict imports of Chinese medical devices, delivering a blow to a key industry under Beijing's high-tech manufacturing strategy. The move comes after the EU, in its investigation, found that Beijing discriminated against foreign firms in procurement of medical devices. The probe alleged that 87 per cent of contracts contained 'direct and indirect discrimination', including prohibiting imported medical devices, the EU said, as quoted by Financial Times. In response to the "discrimination", the vote will mandate European public authorities to exclude Chinese bidders from contracts worth more than €5 million for the next five years, the report added. Notably, the high-performance medical devices are among 10 core industries in Beijing's 'Made in China 2025' plan, aiming to upgrade its manufacturing sector and become a global leader in high-tech industries like robotics, aerospace, and semiconductors. This is also the EU's first use of the International Procurement Instrument, a 2022 law aimed at ensuring equal access to public procurement markets. Ready to talk to Beijing: EU As the move is expected to escalate trade tensions between two major economies, EU trade commissioner Maroš Šefčovič had earlier said that he is willing to find a negotiated solution with Beijing. He is set to meet Chinese commerce minister Wang Wentao on Tuesday on the sidelines of the OECD Ministerial Council Meeting in Paris. Not a first In recent months, trade tensions between the EU and China have escalated, with both sides taking a series of retaliatory measures. Last October, the EU announced the imposition of additional tariffs on electric vehicles (EVs) imported from China, citing concerns over alleged state subsidies that provide Chinese EV manufacturers with an unfair competitive edge in the European market. It also launched several anti-dumping and anti-subsidy investigations targeting a range of Chinese products, including plywood and tyres for cars and trucks. In response, China has introduced anti-dumping duties on European brandy and initiated probes into pork and dairy imports from the EU. However, later it also stepped up its efforts to woo Europe, rolling back some sanctions on EU lawmakers as a goodwill gesture.
