EU Launches Probe into China's Medical Device Procurement Practices

The European Union has initiated an investigation into China's public procurement of medical devices, raising concerns that China may be favoring its own suppliers and imposing unfair conditions that disadvantage European companies. The probe, launched by the European Commission, is the first under the EU's new International Procurement Instrument (IPI), which aims to promote reciprocity in access to international public procurement markets.

The EU suspects that China may have restrictions on imports and impose conditions that lead to abnormally low bids, which could be considered unfair behavior. "The EU fears that China may have a 'Buy China' policy and impose restrictions or conditions that lead to abnormally low bids, putting European companies at a disadvantage," according to a statement from the European Commission.

China has criticized the EU's move, accusing it of engaging in protectionism. "Beijing has lashed out at the investigation, calling it 'protectionism' and urging the EU to stop 'suppressing and restricting Chinese business,'" said a spokesperson for China's Ministry of Commerce.

The investigation is expected to conclude within nine months, with the possibility of a five-month extension. If the probe finds unfair behavior by China, the EU can limit Chinese companies' access to the bloc's public procurement market.

Why this matters: The EU's investigation into China's medical device procurement practices is part of a broader effort by the bloc to address concerns over China's economic policies and ensure a level playing field for European companies. The outcome of the probe could have significant implications for EU-China trade relations and potentially lead to further tensions between the two sides.

The EU has launched several other investigations targeting Chinese subsidies in various sectors, including green tech, solar panels, electric cars, and trains, as it seeks to reduce its reliance on Chinese technology. The latest probe comes amid heightened tensions between the EU and China, with the EU also adopting laws that often have China in their sights, such as a ban on products made using forced labor.

Key Takeaways

• EU launches probe into China's medical device procurement practices under new IPI law.
• EU suspects China may have 'Buy China' policy and impose unfair conditions on bids.
• China criticizes the probe as 'protectionism', urging EU to stop 'suppressing' Chinese firms.
• Probe could lead to EU limiting Chinese companies' access to its public procurement market.
• Probe part of EU's broader efforts to address concerns over China's economic policies.