China announced on Sunday that European medical device companies will be barred from participating in government procurement if contract values exceed 45 million yuan ($6.28 million), escalating trade tensions with the European Union.
The Finance Ministry said the restrictions, effective immediately, exclude European companies that have invested in China and manufacture their products locally, UNB reports.
The move follows Beijing's decision on Friday to impose anti-dumping duties on European brandy, primarily targeting French cognac. Although some major brandy producers received exemptions, this marks the latest development in an ongoing series of trade disputes between China and the EU spanning multiple industries.
Tensions have been rising since the EU imposed duties on Chinese-made electric vehicles (EVs), prompting China to initiate investigations into European pork and dairy imports.
In June, the EU excluded Chinese companies from bidding on government contracts exceeding 5 million euros ($5.89 million). Brussels said the restrictions aimed to pressure Beijing into removing what it described as “significant and recurring legal and administrative barriers” preventing European firms from accessing China's procurement market.
In response, China defended its latest actions, stating it was left with “no choice but to implement countermeasures.”
“China has repeatedly conveyed its willingness to properly resolve differences with the EU through dialogue, consultation, and bilateral government procurement agreements,” said a spokesperson for China’s Ministry of Commerce. “Unfortunately, the EU has ignored China’s goodwill and sincerity and has persisted in imposing restrictive measures and constructing new protectionist barriers.”
