European Union launches probe into China’s medical devices procurement

Brussels: Launching an inquiry against China for allegedly favouring its domestic companies in tenders for medical devices, the European Commission said it is weighing possible tit-for-tat measures, Euronews reported.

This move comes amid longstanding grievances from EU regarding alleged discriminatory practices that hinder European companies from accessing China’s lucrative medical device market.

Brussels has long accused Beijing of employing distorting and discriminatory practices, noted the European Commission. These practices, which include stringent certification processes, opaque approval systems, and demands for abnormally low prices, have created significant barriers for European manufacturers seeking to compete in China, as reported by Euronews.

According to reports, the EU’s medical device industry has faced challenges due to China’s “Buy China” policy, which prioritises domestically made products in public tenders. This policy shift has impacted leading exporters of medical appliances in Europe, including Germany, the Netherlands, and France, who produce a range of high-value medical devices.

The probe, announced by the Commission, will investigate feedback from member states and businesses, engaging in dialogue with Chinese representatives over a period of up to nine months, with a potential extension of five months. “If the investigation confirms the existence of the suspected practices,” stated the Commission, “retaliatory measures on China could be considered to ensure fair competition.” These measures could include restrictions on Chinese companies’ participation in public procurement across the EU, a market valued at over 2 trillion euros. Alternatively, the Commission may opt for more targeted measures, such as limiting prohibitions to tenders above a certain value or imposing conditions that disadvantage Chinese applicants.

The European medtech industry has voiced concerns over the challenges posed by China’s procurement policies. Medtech Europe, the trade association representing European medical technology industries, highlighted the importance of meaningful dialogue with China to address market access issues.

“We hope that this investigation will lead to a meaningful dialogue with China and that the concerns highlighted in the investigation can be addressed through dialogue, eliminating the necessity of implementing (additional) measures in the EU procurement market,” a spokesperson of Medtech Europe said in a statement.

China remains a significant trading partner for medical equipment in Europe, accounting for 11 per cent of the market’s export destinations in 2022, according to the trade association. The probe marks the first application of the International Procurement Instrument (IPI), a legislative tool aimed at addressing unfair competition faced by the EU from countries like China. (ANI)

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