China imposes retaliatory measures on EU-banned medical devices with new limitations
In a move that mirrors the European Union's (EU) exclusion of Chinese companies from EU government purchases of medical devices exceeding €5 million, China has imposed a reciprocal ban on major medical equipment contracts for European companies. This decision, announced by China's Ministry of Finance on July 6, 2025, comes in response to the European Commission's decision made earlier.
The new restrictions apply to procurement projects in China, with the exception of those that have already announced winning bids or transaction results before the effective date. For non-EU enterprises participating in government procurement projects, the proportion of medical devices imported from the EU should not exceed 50% of the procurement's total contract amount.
China's ministry spokesperson emphasised that these measures are in response to the EU's ban on Chinese companies in EU government purchases of medical devices. The spokesperson also claimed that the EU's actions are contrary to the principles of fair competition.
The ministry did not specify any new details or changes in the previously announced measures against medical devices imported from the EU in government procurement. However, it did state that China has no choice but to take "reciprocal restrictive measures" to safeguard the legitimate rights and interests of Chinese enterprises.
Despite the reciprocal ban, China has expressed its willingness to resolve differences with the EU through bilateral dialogue, consultation, and bilateral government procurement arrangements. The ministry did not mention any potential impact of the measures on the EU-China trade relationship.
It is important to note that the value of 45 million CNY, the threshold for Chinese purchasers buying medical devices with a budget over this amount, is approximately 5.34 million EUR at the time of writing. This indicates that the scope of the ban could potentially be significant.
The EU has been accused by China of "double standards" and protectionism, with the ministry's spokesperson insisting that the EU has taken "restrictive measures" to build new "protectionist barriers." The spokesperson for the ministry also claimed that the EU's actions are in violation of the principles of fair competition.
Despite the reciprocal ban, China remains open to dialogue with the EU. The ministry did not provide a timeline for the review or reconsideration of the previously announced measures. However, it is clear that China is taking a firm stance in response to the EU's exclusion of Chinese companies from EU government purchases of medical devices.
- The European Union's (EU) decision to exclude Chinese companies from EU government purchases of medical devices exceeding €5 million has prompted the health-and-wellness industry to scrutinize the science behind medical devices, as China, in retaliation, has imposed a ban on major medical equipment contracts for European companies, citing protectionist behavior and double standards as reasons.
- The finance and business sectors are closely monitoring the trade relationship between the EU and China, given the reciprocal ban on medical devices procurement projects, causing concerns about the potential impact on the health-and-wellness industry and overall bilateral trade.
- As the EU and China brace for dialogues and negotiations, the medical-conditions and science sectors may find themselves at the center of discussions, as both parties aim to ensure fair competition and mutual respect within the medical devices industry.
