Limits share of Chinese-origin goods, components to no more than 50%

The European Union's decision to bar Chinese companies from bidding on public procurement contracts for medical devices valued above 5 million euros ($5.75 million) has renewed concerns over rising protectionism within the bloc, said market watchers and Chinese manufacturers on Monday.

The measure, announced on Friday by the European Commission — the executive arm of the EU — marks the first time Brussels has invoked its International Procurement Instrument, adopted in 2022.

The EC also imposed a cap, limiting the share of Chinese-origin products and components in awarded contracts to no more than 50 percent.

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In response, the China Chamber of Commerce to the EU (CCCEU) expressed strong opposition to what it called a unilateral and discriminatory move that "seriously distorts fair competition and undermines the principle of a level playing field".

The CCCEU argued that the IPI findings are "neither impartial nor based on objective facts", adding that EU claims of systemic barriers in China's procurement market "do not reflect reality". The chamber urged Brussels to reverse the decision and restore a nondiscriminatory business environment.

As global trade faces growing uncertainty, it is essential for major economies to uphold multilateral principles and maintain open dialogue, said Chen Jianwei, a researcher at the University of International Business and Economics' Academy of China Open Economy Studies in Beijing.

Chen said that it is practical for both China and the EU to continue their exchanges on issues related to the World Trade Organization's Agreement on Government Procurement and public procurement practices.

"Constructive dialogue is key to bridging differences, enhancing mutual understanding and promoting fair competition in global procurement markets," he added.

Zhang Haiyan, dean of the School of International Business at Zhejiang Financial College, said that linking market access to geopolitical calculations only deepens mistrust and inflames an already fraught agenda.

Global medical device companies, particularly firms from Europe, the United States and Japan, have long enjoyed broad access to the Chinese market, contributing significantly to the country's healthcare modernization while experiencing robust sales growth, said Zhang.

That view aligns with the latest data. The actual use of foreign direct investment in China's high-tech industries reached 109.04 billion yuan ($15.18 billion) in the first five months of 2025, with FDI rising 59.2 percent year-on-year in the chemical pharmaceuticals manufacturing sector and 20 percent on a yearly basis in the medical instrument and equipment manufacturing sector, said the Ministry of Commerce.

These figures reflect global investors' sustained confidence in China's healthcare and medical device sectors, representing their recognition of the country's vast market potential, ongoing innovation-driven transformation and its strategic importance as a key growth engine for the global medical tech sector, she added.

To address the challenges arising from unilateral actions, Ningbo Yongxin Optics Co Ltd, an optical component manufacturer in Zhejiang province, has stepped up its push to diversify into new markets.

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"Southeast Asia's fast-growing economies are driving higher demand for high-end optical instruments, presenting decent growth opportunities," said Jiang Ji, the company's export unit manager.

The company's export value reached $19.47 million between January and May, statistics from Ningbo Customs showed.

Zhang Lanyong, chairman of Kunshan YiYuan Medical Technology Co Ltd, a Suzhou, Jiangsu province-based manufacturer of computed tomography (CT) tubes, said the company has successfully entered markets in South America and Central Asia in recent years.

The company's CT tube exports hit a record from January to May, marking a year-on-year increase of 400 percent, according to Nanjing Customs.

Contact the writer at zhongnan@chinadaily.com.cn