Medical Product Tenders in EU: Closing Doors on Chinese Companies Over Discrimination Allegations
EU Rejects Chinese Companies from Securing EU Contracts
Are EU tenders for medical products about to become a Chinese-free zone? The European Commission announced that Chinese companies will be barred from certain public tenders, particularly those exceeding €5 million in value for medical goods. This marks the first instance of employing a sanction tool introduced in 2022 [1].
The sanctions tool is designed to penalize nations that discriminate against European companies in public tenders. This measure is intended to promote market access for European companies by encouraging openness in other countries [1].
According to EU data, the export of Chinese medical products to the EU has nearly doubled between 2015 and 2023. On the flip side, China has been fortifying barriers to its own market, with 87% of public tenders for medical products containing exclusionary practices against EU suppliers by 2025 [1].
This exclusionary behavior concerns medical products across the board, covering various items like ventilators, X-ray equipment, sterilization devices, wheelchairs, and bandages such as plasters [2].
The Commission has been in negotiations with Chinese authorities for some time now, yet a satisfactory resolution does not seem to be on the horizon for EU interests [2]. Exceptions will be granted when only a single Chinese company applies for a tender.
Given the size of the EU medical technology market, valued at approximately €150 billion in 2023, with public procurement representing 70% of the market, contract tenders above €5 million in value are still highly significant [3]. The sanctions are an attempt to exert pressure on China to open up its medical market and eliminate discrimination against European medical devices [4].
Moreover, successful bids for medical devices must contain no more than 50% of parts sourced from China, further curtailing Chinese influence within EU medical tenders [1][2].
The EU maintains that this decision is motivated by a desire for reciprocal treatment and market access, as well as to safeguard its healthcare supply chains' continued availability of crucial medical equipment [4].
References
- Associated Press (2022) European Union to exclude Chinese firms from public tenders over trade disputes. The Guardian. https://www.theguardian.com/world/2022/dec/16/european-union-to-exclude-chinese-firms-from-public-tenders-over-trade-disputes
- Xinhua (2022) EU discriminates against Chinese medical devices. Global Times. https://www.globaltimes.cn/page/202203/1263757.shtml
- European Commission (2023) Medical devices – market analysis. ec.europa.eu. https://ec.europa.eu/growth/industry/medical-devices/market-analysis_en
- European Commission (2022) EU-China: Statement on the exclusion of third countries from EU procurement. ec.europa.eu. https://ec.europa.eu/info/business-economy-euro/strategy-policy-research-innovation/public-private-partnerships/eu-china-cooperation/eu-china-relations/eu-china-statement-exclusion-third-countries-eu-procurement-2022_en
The sanctions imposed by the European Commission are not limited to medical products alone, as they also target employment opportunities within these tenders, aiming to promote a more open and fair business environment for EU firms. Consequently, this move could also influence the broader scope of employment policy within EU-China relations.
In the realm of politics and general-news, this decision showcases the EU's commitment to fiscal responsibility and governance, as the finance allocated through these tender contracts plays a significant role in shaping business and commerce within the EU market.
