EU to launch first-ever procurement probe over China’s medical devices sector, sources say
- EU officials are frustrated by lack of progress on the issue after frequently raising it with their Chinese counterparts
- Brussels has instigated a slew of investigations in recent weeks as frustration mounts over Beijing’s policies
The European Commission will launch an investigation into European firms’ access to procurement markets in China’s medical devices sector, sources said.
The probe would mark the first case under the EU’s international procurement instrument, or IPI – a new economic weapon. An official announcement is expected in the coming days.
It will add to a legion of probes Brussels has instigated in recent weeks, with frustration mounting against Beijing’s economic policies and its perceived unwillingness to change course.
The IPI was adopted in June 2022 but has yet to be used. Its aim is to prise open lucrative procurement markets that are closed to EU firms. Firms from countries whose tendering markets are closed to European companies will be penalised.
The medical devices issue has been raised by EU officials with their counterparts in Beijing on a frequent basis. They point to the relatively free access Chinese firms have to public procurement tenders in the European market, versus the restrictions faced by European competitors in China.
After those talks, the sides agreed to continue talking about market access to China’s giant medical devices sector. But the European side has been frustrated by the lack of progress.
“The EU hopes to pursue discussions on improving market access for European medical devices. Eliminating barriers is a matter of mutual benefit and would directly improve the welfare also of Chinese citizens, giving them access to the best healthcare technologies,” the Latvian official said at the time.