The China Chamber of Commerce to the EU has expressed profound disappointment over the European Union's recent decision to use a trade tool that limits Chinese companies' participation in public procurement, raising concerns about fairness and market access.

This decision marks the first application of the International Procurement Instrument (IPI), enacted in 2022 to ensure reciprocal access to public procurement markets.

The IPI allows the European Commission to impose various restrictions on companies bidding for public contracts, which can range from score adjustments to outright bans.

The EU's proposed restrictions, which are set to be effective for five years, are viewed as discriminatory and could exacerbate existing trade tensions between the EU and China.

These potential actions add to the ongoing trade tensions between Brussels and Beijing, characterized by mutual accusations of protectionism.

As China seeks to strengthen ties with the EU amidst rising tensions with the United States, these restrictions complicate the economic relationship between the two regions.

Major Chinese companies, including Bank of China and BYD Co., are voicing concerns about the potential escalation of trade tensions resulting from these measures.

In early June 2025, Chinese Commerce Minister Wang Wentao is expected to meet with EU trade officials in Paris to discuss these trade grievances, including access to China's procurement market.

The CCCEU has urged both China and the EU to promote free trade and cooperation rather than escalate tensions with unilateral measures, especially in light of rising global protectionism.

The chamber emphasized that European medical device companies have historically had significant access to the Chinese market, suggesting that market reciprocity should reflect this reality.

The outcome of upcoming negotiations and discussions will significantly influence future trade flows, investment, and the overall economic partnership between China and the EU.

The procurement restrictions may also impact broader trade and travel industries, potentially leading to stricter visa policies and decreased confidence among business travelers.