China Blocks European Firms from Key Medical Contracts Amid Trade Dispute

China has imposed restrictions on European companies, excluding them from participating in major government contracts for medical devices. This decision is a response to similar measures taken by the European Union against Chinese firms.

The new Chinese policy applies to contracts exceeding $6.3 million, with exemptions for EU-funded companies operating within China. Additionally, non-EU companies bidding for Chinese contracts must ensure that the share of EU imports does not surpass 50% of the total contract value.

This reciprocal move by China aims to counter what it perceives as protectionist trade barriers imposed by the EU. The disagreement over medical device trade has been ongoing for months, reflecting broader tensions in the economic relationship between these important trade partners.

Both sides accuse each other of unfair practices, highlighting challenges in sectors like automotive, electronics, and solar energy.