EU excludes Chinese providers from medical contracts – a warning signal!

EU excludes Chinese providers from medical contracts – a warning signal!

The latest developments in the European Union have caused quite a stir. From now on, Chinese companies will be excluded from certain public contracts. This applies in particular to the procurement of medical devices worth more than five million euros. This includes vital products such as masks, bandages as well as machines and robots that are urgently needed in many hospitals. The decision is based on a sanctions tool that has been in force since 2022 and is aimed at punishing states that treat European companies unfairly in public tenders. Deutschlandfunk reports that this measure is primarily a response to the pressure that China is exerting on European manufacturers of medical devices.

What exactly happened? A recent report finds that China is unfairly restricting EU manufacturers' access to government contracts. These investigations are part of the EU's International Procurement Instrument (IPI), launched in 2022 to promote competition. EU Trade Commissioner Maroš Šefčovič emphasizes the importance of open and fair trade relations with China, but at the same time remains skeptical that Chinese hospitals will be forced to source at least 70 percent of their medical equipment from their own country. While China vigorously denies these allegations, European decision-makers are drawing clear conclusions: Possible next steps could be further restrictions or even the exclusion of Chinese providers from EU orders. The EU Commission has set itself the goal of creating a level playing field and ending discriminatory measures.

Trade relations under pressure

In recent years, trade relations between the EU and China have changed significantly. Chinese exports of medical devices to the EU increased by an impressive 100 percent between 2015 and 2023. This shows that the EU public procurement market is one of the largest and most accessible in the world. But access is becoming increasingly difficult for European companies, which is alarming not only for individual manufacturers but also for the European economy. An infographic of the European Parliament points out that the EU recorded a trade deficit of 432 billion euros in 2022, mainly due to rising energy prices.

Who are the main players in international trade? The EU's main export partners are the United States, followed by the United Kingdom and China, which takes third place. This highlights the importance of trade relations and how much the EU relies on maintaining high standards to ensure its competitiveness in international business.

Finally, it remains to be hoped that a constructive dialogue with China can be achieved in order to reduce the existing trade barriers. Because one thing is certain: a fair game is beneficial for both sides and could pave the way for long-term and successful cooperation.