In a bold challenge to Sino-European trade relations, the European Commission has completed an investigation accusing China of discriminating against European medical device companies in its public procurement processes.

This development marks the opening of a new commercial front between the European Union and China, as relations have soured in recent years amid escalating trade tensions.

The findings of this investigation, released in April 2024 by the European Commission, assert that China displays 'unacceptable asymmetry' in how it treats European companies seeking to participate in its public tenders for medical supplies.

In response, Maros Sefcovic, the European Commissioner for Trade and Economic Security, has expressed the EU's readiness to take 'decisive actions' against Chinese authorities if the alleged discrimination persists.

This escalating dispute unfolds against a backdrop of already strained relations between Beijing and Brussels.

Late in 2023, the European Commission initiated an anti-subsidy investigation into Chinese-manufactured electric vehicles, which concluded with the EU imposing tariffs on these imports.

In a counter-move, China launched its own investigations into various European products, including pork imports—a sector of particular importance to Spain.

In a statement, Sefcovic emphasized the EU's desire to maintain open, fair, and mutually beneficial trading relations with China.

However, he underscored the necessity for reciprocity, as EU procurement markets are accessible to non-EU countries, and EU companies should be treated equally in foreign markets.

The Commission utilized the International Procurement Instrument, a tool adopted in 2022 as part of the EU's broader Economic Security Agenda.

This initiative aims to level the playing field for EU firms bidding for contracts outside the European market and to promote transparent, open public procurement globally.

As detailed in the Commission's report, the EU has identified significant barriers faced by European medical product manufacturers in Chinese public tenders.

While dialogue remains a preferred avenue for resolving these issues, the Commission has pledged readiness to defend equal market conditions and support fair competition if necessary.

The report points to evidence that the Chinese government regards its high-end medical sector as strategic, supporting it through various policies, particularly public procurement.

Under the 'Made in China 2025' strategy, the report notes that hospitals were mandated to source 50% of their medical equipment domestically by 2020, with targets rising to 70% by 2025 and 95% by 2030.

The investigation spanned an analysis of 380,000 medical product tenders from 2017 to mid-2024. However, only a fraction, 35,504 tenders, included complete eligibility criteria and necessary information for participation, highlighting a critical lack of transparency in Chinese procurement processes.

This ongoing issue underscores the growing complexity of EU-China trade relations and the broader implications for global economic policies and bilateral trade agreements.