EU to stop Chinese firms from public procurement tenders in key sector

The European Union's latest move to exclude Chinese companies from bidding on public procurement contracts in the medical devices sector has raised concerns over rising protectionism within the bloc and the potential for escalating trade tensions with China, market watchers said on Wednesday.

Their comments came after EU member states decided to block Chinese companies from participating in public procurement tenders in the medical devices sector for deals valued at over 5 million euros ($5.7 million) under the bloc's International Procurement Instrument (IPI).

The plan, which according to reports was approved on Monday, would prohibit Chinese firms from bidding on such contracts for a five-year period.

READ MORE: Chinese chamber decries EU curbs on Chinese medical device firms

Apart from harming the interests of Chinese companies, the EU's decision and discriminatory measures undermine fair competition and set up new trade barriers through unilateral tools, China's Ministry of Commerce said in a statement on Tuesday.

The ministry emphasized that China firmly opposes this protectionist measure and will closely monitor the EU's follow-up actions, taking all necessary steps to safeguard the legitimate rights and interests of Chinese companies.

Zhou Mi, a researcher at the Beijing-based Chinese Academy of International Trade and Economic Cooperation, said that using policy instruments as trade barriers threatens the economic interests of both China and the EU and undermines global confidence in economic recovery and sustainable development.

"The application of the IPI as a unilateral instrument does little to address structural issues and instead injects more uncertainty into China-EU economic relations," said Zhou. "Rather than resorting to exclusionary tactics, both sides should focus on constructive dialogue and rules-based solutions."

Chen Fengying, a researcher at the Beijing-based China Institutes of Contemporary International Relations, said that China and the EU have long maintained sound cooperation in the healthcare sector, particularly with deepening collaboration in medical devices, which has proved mutually beneficial.

Faced with internal coordination challenges, the EU appears to be shifting contradictions onto China, said Chen, noting that European medical device companies have long benefited from extensive access to the Chinese market, playing a vital role in advancing the country's healthcare modernization and witnessing strong business growth.

China has repeatedly stated its willingness to enhance transparency and openness in its market.

In addition to expanding trials to open sectors such as telecommunications, medical services and education, China encourages multinational corporations to invest in service sectors including elderly care, culture and tourism, sports, healthcare, vocational education and finance, according to the country's 2025 Action Plan for Stabilizing Foreign Investment.

The China Chamber of Commerce to the EU also urged the EU to reconsider the necessity and long-term implications of its restrictive measures under the IPI.

The Brussels-based CCCEU represents more than 100 members and chambers in EU member states, covering over 1,000 Chinese companies, including Bank of China (Luxembourg) SA and China Three Gorges (Europe) SA.

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As global trade faces considerable uncertainty and certain countries are resorting to unilateral tariff measures that disrupt global market order, both China and the EU should focus on how to explore broader market space to expand their development, instead of introducing unilateral restrictions that escalate tensions, said the CCCEU in a statement on Tuesday.

In a separate development, Chinese Commerce Minister Wang Wentao met with EU Commissioner for Trade and Economic Security Maros Sefcovic on the sidelines of a World Trade Organization ministerial gathering in Paris on Tuesday, according to information released by the Ministry of Commerce.

They held focused, candid and in-depth discussions on pressing issues related to China-EU economic and trade cooperation, and agreed to step up coordination between their teams to prepare for key items on this year's bilateral agenda, the ministry said in a statement on Wednesday.

Contact the writer at zhongnan@chinadaily.com.cn