China’s Ministry of Finance announced on Sunday that it will restrict government purchases of European Union-made medical devices exceeding 45 million yuan (USD 6.3 million), in direct response to the EU’s recent decision to bar Chinese firms from participating in large-scale medical device tenders.

Last month, the European Commission invoked its International Procurement Instrument—a trade tool aimed at ensuring fair access to public procurement markets—to block Chinese firms from participating in tenders worth EUR 60 billion (USD 70 billion) annually, citing discriminatory practices against EU companies in China.

In a statement, China’s Ministry of Commerce said that despite its “goodwill and sincerity,” the EU had persisted with “restrictive measures and protectionist barriers,” leaving China with “no choice” but to respond with reciprocal actions.

Under the new Chinese rules, imports of medical devices from third countries containing more than 50 per cent EU-made components will also be restricted. However, products made by EU companies within China will not be affected by the new measures, according to the ministry.

Source: businessworld