China Warns EU Over New Procurement Restrictions Impacting Medical Device Trade Amid Growing Tensions with Brussels

A leading Chinese business lobby, the China Chamber of Commerce to the EU, has expressed serious concern about the European Union’s recent move to limit access for Chinese medical device manufacturers to public procurement contracts within the bloc. The chamber described the EU’s action as “profoundly disappointing” and cautioned that the use of this trade tool threatens to complicate the already delicate economic and trade relationship between China and the EU.

The organization emphasized that the EU’s targeted restrictions send a troubling signal that contradicts the union’s stated commitments to openness, fairness, and non-discrimination in market access. This development has raised alarm among Chinese enterprises that have long participated in European markets, especially at a time when Beijing is actively seeking to strengthen its diplomatic and economic ties with the EU amid shifting global geopolitical dynamics.

The members of the chamber include significant Chinese companies such as Bank of China, Cosco Shipping Holdings Co., and BYD Co., underscoring the weight of the business community’s response. Their statements highlight concerns that the EU’s approach could escalate tensions and disrupt the progress made in recent years toward deeper economic cooperation.

The restrictions on Chinese firms stem from the EU’s deployment of the International Procurement Instrument (IPI), a law introduced in 2022 to promote reciprocity in public procurement access between the EU and its trading partners. The IPI grants the European Commission the authority to impose a range of measures, from adjusting scores in procurement tenders to outright exclusion of companies from participating in contracts.

This is the first instance of the IPI being utilized, marking a significant step in the EU’s efforts to level the playing field in procurement markets worldwide. The move followed an investigation launched by the EU in April 2024 into China’s practices in the procurement of medical devices. By January 2025, the investigation concluded that China engaged in discriminatory behavior against foreign firms.

Despite consultations between the EU and China to find alternative solutions, no resolution was reached, prompting the EU to proceed with restrictive measures against Chinese medical device companies. This decision is part of a broader effort by the EU to safeguard its market interests and ensure fair competition in procurement processes.

Chinese Perspective: Calls for Accurate Understanding and Fair Engagement

The China Chamber of Commerce to the EU argued that any efforts toward market reciprocity should be grounded in a comprehensive understanding of the historical and practical realities that have shaped bilateral trade relations. The chamber noted that European medical device companies have enjoyed substantial access to the Chinese market for years, contributing significantly to the modernization of China’s healthcare system and experiencing substantial growth in that market.

By emphasizing this context, the chamber expressed that the EU’s current decision overlooks the mutual benefits derived from this engagement and undermines the spirit of balanced cooperation. This perspective underscores a plea for dialogue and fairness that takes into account the complexities and achievements of the China-EU economic partnership.

The chamber’s statements reflect a broader concern within the Chinese business community that the EU’s trade restrictions may be more punitive than constructive, potentially disrupting ongoing efforts to foster stronger economic ties. This could have a ripple effect not only on the procurement sector but also on wider trade and investment flows between the two economic powerhouses.

Upcoming High-Level Talks and Potential Impact on Bilateral Relations

The tension caused by the EU’s procurement restrictions comes at a critical juncture as Chinese and European officials prepare for high-profile diplomatic engagements. Chinese Commerce Minister Wang Wentao was scheduled to meet EU trade officials in Paris in early June 2025. These talks are expected to address a range of trade grievances, including issues around fair access to China’s procurement market.

In July 2025, European leaders planned to travel to Beijing for a summit with their Chinese counterparts. This summit represents an opportunity to reset and potentially ease tensions in trade relations, although the recent procurement curbs have added a layer of complexity to negotiations.

The outcome of these meetings will likely have significant consequences for the travel and trade industries. A resolution that fosters cooperation and mutual benefit could restore confidence among businesses and travelers, while unresolved disputes might escalate tensions, affecting bilateral trade flows and investment.

Implications for the Travel and Trade Industries

The use of procurement restrictions against Chinese companies by the EU could have broader implications for global trade and travel industries. Trade tensions between two major economies risk spilling over into other sectors, potentially affecting international business travel, cross-border investments, and tourism.

In the travel industry, increased trade friction may result in more stringent visa policies, travel restrictions, or decreased business traveler confidence, impacting airlines, hotels, and business tourism. Companies operating between China and the EU may face uncertainty that discourages investment in travel-related infrastructure or joint ventures.

Moreover, disruptions in the medical device sector can impact healthcare tourism, an area where both regions have emerging cooperation. Restrictions could hinder the flow of medical equipment and services, affecting patient care options and the growth of health-related travel.

The Broader Global Context: Navigating Economic Nationalism and Cooperation

The EU’s decision to restrict Chinese firms in procurement aligns with a wider global trend of economic nationalism and protective trade policies. Countries are increasingly leveraging trade tools to protect domestic industries and assert geopolitical influence. While such measures can provide short-term advantages, they also carry risks of escalating trade wars and reducing global economic integration.

For travelers, these dynamics can translate into fluctuating travel regulations, uncertain border policies, and shifts in available international services. Business travelers, in particular, may experience more complexities in securing cross-border travel arrangements as diplomatic relations influence visa policies and business opportunities.

Global travel and trade industries must navigate this complex environment by advocating for stable, transparent policies and by adapting to changing political landscapes. Encouraging dialogue and fair market access remains crucial to maintaining healthy international relations that support travel and commerce.

Key Points on EU Procurement Curbs and Impact

• The EU invoked the International Procurement Instrument in 2025 to limit Chinese medical device firms’ access to government contracts.
• China’s leading business chamber expressed disappointment, highlighting the risk to trade ties and the contradiction with EU market principles.
• The dispute arises amid broader geopolitical tensions and precedes planned diplomatic talks in Paris (June) and Beijing (July).
• The measure follows an EU investigation concluding China discriminated against foreign medical device companies.
• Chinese officials urge recognition of mutual benefits and call for balanced, fair engagement.

Balancing Protection and Partnership in EU-China Trade

The EU’s use of procurement restrictions against Chinese medical device makers marks a pivotal moment in trade relations, emphasizing the delicate balance between protecting domestic markets and fostering international cooperation. While the EU seeks to ensure fair competition and reciprocity, China stresses the importance of acknowledging shared growth and maintaining open dialogue.

These developments will inevitably influence the travel and trade sectors, affecting business travel patterns, investment decisions, and global economic ties. How the two sides navigate this dispute in upcoming diplomatic engagements will be critical for the future of their relationship and the wider international travel industry.

Both regions stand at a crossroads where strategic decisions on trade and cooperation will shape travel, commerce, and economic growth for years to come. Travelers and businesses worldwide will be closely watching these developments as they consider their own international plans and partnerships.

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