A report published on Tuesday has brought to light ongoing concerns over “continued discrimination” against EU medical devices in China’s public procurement market.
The findings of this report are set to play a crucial role in shaping the European Commission’s strategy to restore fair competition and address barriers in trade relations with China.
The report, released as part of an inquiry conducted under the EU’s International Procurement Instrument (IPI), uncovers substantial evidence that China has been actively limiting the access of EU medical device producers to its government contracts.
The European Commission (EC) has described these practices as unfair and discriminatory, highlighting their detrimental impact on European businesses attempting to compete in the Chinese market.
Evidence of Discriminatory Practices
The inquiry found that China employs various forms of direct and indirect discrimination against EU medical devices and suppliers. This includes policies and practices that effectively exclude European companies from competing on equal terms for government contracts. The report further notes that these discriminatory measures span all categories of medical devices and occur throughout China’s entire territory.
The EU’s public procurement market, in contrast, remains one of the most open and accessible globally. This openness has enabled Chinese exports of medical devices to the EU to grow significantly, with a surge of over 100% between 2015 and 2023. This disparity underscores the challenges faced by European companies seeking reciprocal access to the Chinese market.
The EU’s Response
The European Commission has reaffirmed its commitment to addressing these issues through constructive dialogue with Chinese authorities. A spokesperson for the EC stated, “The EU remains dedicated to engaging China in a constructive dialogue aimed at addressing and eliminating the discriminatory measures.”
However, the spokesperson also emphasized that the Commission is prepared to take action if diplomatic efforts fail to yield acceptable solutions. The IPI, a tool designed to promote reciprocity and fairness in public procurement markets, may be used to implement countermeasures. These measures could include restricting or excluding Chinese bidders from participating in EU government contracts, provided such actions align with the EU’s interests.
Restoring a Level Playing Field
The report’s findings will now inform the European Commission’s assessment of potential actions to restore a level playing field. If measures under the IPI are deemed necessary, they could mark a significant escalation in the EU’s approach to addressing trade imbalances with China.
The broader implications of such measures could extend beyond the medical devices sector. By taking a firm stance, the EU aims to send a clear message about the importance of fair competition and mutual market access in its trade relationships.
The Path Forward
While the report highlights serious concerns, it also opens the door for potential resolution through dialogue. The EU’s preference for a cooperative approach reflects its broader strategy of engaging with international partners to address trade disputes. However, the Commission’s willingness to consider unilateral measures underlines the urgency of the situation and the importance of protecting the interests of European businesses.
The discriminatory practices outlined in the report not only hinder the growth of EU medical device producers but also undermine the principles of free and fair trade. As the EU moves forward, it faces the dual challenge of addressing these barriers while maintaining a constructive relationship with China.
In conclusion, the publication of this report marks a critical step in the EU’s efforts to tackle discrimination in international trade. By shedding light on these issues, the EU aims to ensure that its businesses can compete on equal terms and continue to thrive in the global marketplace. Whether through dialogue or decisive action, the EU’s response will be closely watched as it seeks to uphold the values of fairness and reciprocity in its trade relationships.
Main Image: By Frp17580 – Own work, Public Domain, https://commons.wikimedia.org/w/index.php?curid=5244864
