Report finds discrimination in China’s public procurement market for EU medical devices

Copyright: European Union
"Openness needs to be reciprocal: government contracts in the EU are open to non-EU countries, and we expect other countries to treat our companies with similar fairness," stated Commissioner Maroš Šefčovič.

Today’s report highlights ongoing discrimination against EU medical devices in China’s public procurement market. This report will inform the European Commission’s assessment regarding potential measures to restore a level playing field between the EU and China in this sector.

The findings come from the first investigation conducted under the EU’s International Procurement Instrument (IPI). They prove China unfairly limits EU medical device producers’ access to government contracts.

The EU remains committed to engaging in constructive dialogue with China to address and eliminate these discriminatory practices. However, if an acceptable solution is not reached, the Commission will carefully evaluate the possibility of adopting IPI measures. Should the Commission determine that such measures are in the EU’s interest, they may include restrictions on or exclusions of Chinese bidders from government contracts within the EU.

“The European Commission strongly wishes to maintain open, fair and mutually beneficial trade relations with China, including on public procurement. However, openness needs to be reciprocal: government contracts in the EU are open to non-EU countries, and we expect other countries to treat our companies with similar fairness. We have found that China is discriminating against EU medical devices producers in bids for public contracts, and while we continue to prioritise dialogue as a first step to finding solutions, we stand ready to take decisive action to defend the level playing field, and support fair competition,” stated Maroš Šefčovič, Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency.

The Commission Report released today finds that China has implemented various forms of discrimination against EU medical devices and suppliers, creating significant barriers to their access across all regions of the country.

Despite this, Chinese exports of medical devices to the EU surged over 100% from 2015 to 2023, indicating the openness of the EU market.

The International Procurement Instrument (IPI), which took effect on August 29, 2022, aims to restore balanced opportunities for EU companies bidding outside the EU and promote fair access to global public procurement markets.

The first investigation under the IPI was launched by the Commission on April 24, 2024, in response to practices in China’s medical device procurement market.

All measures under the IPI must be specific and follow the principles of proportionality and efficiency while also considering potential supply issues.

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