The European Commission has recently announced an investigation into Chinese public procurement practices concerning medical devices, with the goal of assessing whether European suppliers have been treated fairly in the Chinese market. This investigation, which China has criticized, is a part of the EU's strategy to safeguard European producers from potential unfair competition and promote a level playing field in international trade. If the probe finds evidence of unfair access for European suppliers in China, the EU may consider imposing restrictions on Chinese medical device companies participating in EU public tenders.
This investigation marks the first under the EU International Procurement Instrument, designed to address concerns raised by European companies and governments regarding access to the Chinese market. The EU has been grappling with ensuring fair competition and addressing trade challenges, as seen in a recent raid on a Chinese security equipment company's offices in Europe, and a separate probe into potential punitive tariffs on Chinese electric vehicle imports. Concurrently, the EU is examining subsidies received by Chinese suppliers in sectors such as wind turbines and solar power that are intended for the European market.
The European Commission's preliminary assessment suggests that China may be employing measures that lead to a systemic impairment of European Union economic operators' access to the Chinese market. A specific focus of the investigation is on practices such as a "Buy China" policy, import restrictions, and conditions that result in unusually low bids, which could disadvantage profit-oriented companies. The Commission has listed categories of medical devices that may be affected, including orthopedic appliances, surgical devices, gauze, and bandages. China has been invited to present its perspective and engage in consultations with the Commission to address the alleged measures and practices under scrutiny. The investigation is expected to be completed within nine months, with the potential for an extension up to a further five months by the Commission.