EU Accuses China of Unfair Discrimination in Medical Device Procurement

January 15, 2025 — A new report from the Eurpean Commission reveals continued discrimination against European Union medical device companies in China's public procurement market, prompting the European Commission to consider retaliatory measures. The report, the first investigation under the EU's International Procurement Instrument (IPI), presents compelling evidence of China unfairly limiting EU producers' access to government contracts.

Key Facts:

• Report reveals continued discrimination against EU medical device companies in China’s public procurement market.
• The report is the first investigation under the EU’s International Procurement Instrument (IPI).
• EU is committed to dialogue but will consider IPI measures, including restricting Chinese bidders from EU contracts, if necessary.
• Chinese medical device exports to the EU have surged by over 100% between 2015 and 2023.
• The IPI aims to create a level playing field for EU businesses in global procurement markets.

The report details various forms of direct and indirect discrimination impacting all categories of medical devices across China. This comes despite the EU’s public procurement market being one of the most open globally, with Chinese medical device exports to the EU more than doubling between 2015 and 2023.

The EU remains committed to dialogue with China to resolve the issue. However, if no acceptable solution is found, the Commission will assess implementing IPI measures. These could include restricting or excluding Chinese companies from bidding on EU government contracts.

The IPI, which came into force in August 2022, is designed to create a level playing field for EU businesses tendering for contracts outside the EU and promote fair access to global public procurement markets. The Commission launched its investigation into China's medical device procurement practices in April 2024.

Any measures adopted under the IPI must be proportionate, efficient, and consider potential supply chain disruptions.

Maroš Šefčovič, Commissioner for Trade and Economic Security, emphasized the EU's desire for open and mutually beneficial trade relations with China, including in public procurement. "However, openness needs to be reciprocal," he stated. "Government contracts in the EU are open to non-EU countries, and we expect other countries to treat our companies with similar fairness. We have found that China is discriminating against EU medical devices producers in bids for public contracts, and while we continue to prioritise dialogue as a first step to finding solutions, we stand ready to take decisive action to defend the level playing field, and support fair competition."

More News