On July 6, 2025, China implemented a ban on European medical device companies from participating in government procurement contracts exceeding 45 million yuan, escalating trade tensions with the EU.

China's Ministry of Commerce justified the ban as a necessary measure to protect the rights of Chinese companies and ensure fair competition.

However, European companies that manufacture locally in China are exempt from these new restrictions.

This ban marks the first use of the EU's International Procurement Instrument, which aims to promote reciprocal market access and was enacted in 2022.

The procurement dispute complicates ongoing trade negotiations, with European officials asserting their actions promote fair competition while China accuses the EU of politicizing trade.

In response to the EU's actions, Chinese state media condemned the decision as politically motivated, asserting that China's manufacturing success stems from systemic efficiency and innovation.

The ongoing trade conflict could lead to higher prices and uncertainty for European consumers and companies, potentially impacting global commerce in the long term.

These new restrictions threaten billions in sales for European firms, particularly affecting companies in Germany, France, and the Netherlands.

Reports indicate that the Chinese government has pressured domestic hospitals to prioritize purchasing medical devices from local manufacturers, further impacting foreign competitors.

China's actions are viewed as a strategy to balance local and foreign medical device trade amidst rising tensions over tariffs and trade policies.

Chinese experts have indicated a willingness to cooperate with the EU if tensions decrease, but they are also prepared to respond to any escalations.

Experts stress the importance of dialogue and cooperation between China and the EU to maintain fair market access and a stable global trade environment.