The EU ‘touched’ the Chinese medical equipment market, Beijing reacted immediately

Reuters reported on April 24 that this is the first investigation within the framework of the EU’s International Procurement Instrument (IPI), with the aim of promoting “reciprocity” in accessing the principal procurement market. international. The results of this investigation could lead to the EU imposing market access restrictions on Chinese medical device companies in the 27-member EU bloc.

The EU side listed a number of issues where the union suspects Beijing “unfairly favors” contractors. Accordingly, China can apply a “Made in China” policy, impose restrictions on importing goods, and adjust conditions that cause unusually low bid prices.

AFP April 24 quoting the EU’s official communiqué, said: “The European Commission’s preliminary assessment is that the restrictive measures and practices cause a serious and permanent legal and practical impairment of the ability to access of EU economic developers, goods and services”.

Reacting to the above information, Chinese Foreign Ministry spokesman Wang Wenbin criticized the investigation, calling this move “damaging the image of the EU”. In addition, Mr. Wang also warned that the EU is gradually moving towards protectionism, and called on Brussels to stop using any excuse to punish China’s business activities.

The EU said the investigation would end within nine months of starting, although the European Commission could extend it for another five months. The EU invited China to provide its own views and also enter into consultations with the European Commission to eliminate or remedy the alleged measures and practices.

According to a 2023 report by the Mercator Institute for China Studies (MERICS-Germany), China is the world’s second largest medical equipment market (after the US), with a value of about 145 billion USD in 2022.

Escalating trade tensions

The EU has launched a wave of investigations targeting China over green technology subsidies. In early April this year, the EU angered Beijing after announcing an investigation into Chinese wind turbine suppliers. Other investigations have focused on Chinese subsidies for solar panels, electric cars and trains as European countries seek to escape over-reliance on the Chinese market.

In addition, the EU recently implemented a new instrument, called the Foreign Subsidy Regulation (FSR). The tool is designed to detect “market-disturbing” state subsidies on the books of foreign companies operating in the EU.

According to South China Morning PosOn April 24, four investigations were conducted targeting Chinese companies using this tool. On April 23, Chinese businesses expressed confusion over the European Commission’s unannounced “dawn raids” on the offices of a Chinese surveillance equipment manufacturer in the Netherlands and Poland. Lan, with the intention of finding evidence of subsidies.

Responding to the above move, the Chinese Chamber of Commerce in the EU (CCCEU) issued a statement: “Without prior notice, enforcement agencies authorized by the European Commission conducted raids at the office.” company offices in both countries in the morning. They confiscated employees’ IT equipment and mobile phones, scrutinized office documents and demanded access to data.” .

“CCCEU reaffirms its resolute opposition to the European Commission’s use of the FSR as a means to exert economic pressure on Chinese companies operating in the EU, especially in the field of transfer change green”, according to Hoan Cau Times newspaper March 23.