China’s Minisattempt of Finance announced on Sunday that it will restrict government purchases of European Union-built medical devices exceeding 45 million yuan (USD 6.3 million), in direct response to the EU’s recent decision to bar Chinese firms from participating in large-scale medical device tfinishers.
The shift marks a sharp escalation in trade tensions between Beijing and Brussels, which have been on the rise following the EU’s imposition of tariffs on Chinese electric vehicles and China’s counteraction with duties on imported EU brandy.
Last month, the European Commission invoked its International Procurement Instrument—a trade tool aimed at ensuring fair access to public procurement markets—to block Chinese firms from participating in tfinishers worth EUR 60 billion (USD 70 billion) annually, citing discriminatory practices against EU companies in China.
In a statement, China’s Minisattempt of Commerce stated that despite its “goodwill and sincerity,” the EU had persisted with “restrictive measures and protectionist barriers,” leaving China with “no choice” but to respond with reciprocal actions.
Under the new Chinese rules, imports of medical devices from third countries containing more than 50 per cent EU-built components will also be restricted. However, products built by EU companies within China will not be affected by the new measures, according to the minisattempt.
These countermeasures take effect immediately, ahead of a high-level EU-China summit scheduled later this month in China.
Adding to the tit-for-tat dynamic, China on Friday announced five-year tariffs of up to 34.9 per cent on EU brandy—mostly French cognac—citing a completed anti-dumping investigation. However, major producers such as Pernod Ricard, LVMH, and Remy Cointreau will avoid the duties if they meet minimum pricing conditions, the details of which remain undisclosed.
