**EU Moves to Limit Chinese Medical Device Firms’ Access to Procurement Contracts**
The European Union is poised to restrict access for Chinese medical device manufacturers to public procurement contracts within its member states. A vote on this proposed measure is expected as early as Monday, according to sources familiar with the discussions who requested anonymity due to the sensitive nature of the deliberations. If approved, this action would mark the EU’s first implementation of its International Procurement Instrument (IPI), a law enacted in 2022 aimed at fostering reciprocity in public procurement markets.
This potential restriction could escalate tensions with China, particularly as the EU navigates its complex relationship with Beijing amid ongoing trade challenges, including those stemming from the U.S. tariff policies. The European Commission has not yet responded to requests for comments regarding this development.
In April, the EU initiated an investigation into China’s procurement practices for medical devices, which concluded in January that foreign companies faced discrimination in the Chinese market. Efforts to find alternative solutions through consultations have reportedly been unsuccessful. In recent years, China has increasingly prioritized local procurement in the medical technology sector, imposing stringent domestic product requirements that have significantly altered trade dynamics. This shift transformed a €1.3 billion trade deficit in medical devices for China in 2019 into a €5.2 billion surplus by the following year, as noted in an EU report published last April.
The investigation’s goal was not to reverse this trend but to ensure fair competition. The EU has consistently argued that China’s market-distorting practices are part of its “Made in China” strategy, which aims for Chinese companies to capture 85% of the domestic market share for core medical device components by 2025, with a target of 70% for higher-end devices.
The IPI grants the European Commission the authority to impose various restrictions on companies seeking to participate in procurement processes, ranging from adjustments in tender scoring to outright bans from procurement contracts.
**Conclusion**
As the EU prepares to vote on these significant restrictions, the implications for international trade and competition in the medical device sector could be profound, potentially reshaping the landscape of public procurement in Europe.
**FAQ**
**What is the International Procurement Instrument (IPI)?**
The IPI is a law enacted by the EU in 2022 designed to promote fairness and reciprocity in access to public procurement markets, allowing the EU to impose restrictions on foreign firms that do not provide equal access to their markets.
