The European Union has formally barred Chinese companies from bidding on public contracts for medical devices exceeding €5 million, marking a significant escalation in its trade dispute with Beijing. The move, confirmed by the European Commission on Wednesday, is the first enforcement action under the bloc’s International Procurement Instrument (IPI) and aims to address what Brussels calls “discriminatory” restrictions against European suppliers in China.

The ban applies to all government tenders across the EU single market involving medical equipment valued above the €5 million threshold. Additionally, any successful bids must ensure that less than 50% of their components originate from China. Exceptions will be granted only when no alternative suppliers are available.

“This is about restoring fairness,” said EU Trade Commissioner Maroš Šefčovič. “We want to ensure that European companies have the same access to China’s market as Chinese firms enjoy in ours. The goal is a level playing field, not confrontation.”

The Commission’s decision follows a detailed investigation into China’s procurement laws, which found substantial evidence that EU-made medical devices are systematically excluded from Chinese public tenders. The report cited opaque regulatory approvals, discriminatory certification practices, vague national security clauses, and unsustainable pricing requirements that effectively bar European participation.

According to the Commission, more than 87% of procurement contracts for medical devices in China involved practices that disadvantaged European firms. These findings, the EU argues, justify the reciprocal measures now being implemented.

The move comes at a particularly sensitive moment in EU-China relations, as both sides attempt a cautious reset following years of growing economic friction. A high-level EU-China summit is scheduled to take place in Beijing in July, where trade will likely top the agenda.

The medical devices ban is part of a broader tit-for-tat dynamic shaping the relationship. Earlier this month, the EU imposed tariffs of up to 45% on Chinese electric vehicle imports, citing concerns over state subsidies. In response, Beijing extended its anti-dumping investigation into European pork products by six months, threatening a sector crucial to countries like Spain and Denmark.

While the Commission insists its actions are compliant with World Trade Organization (WTO) rules, the move underscores the growing push in Brussels for “strategic autonomy” and a more assertive trade stance, especially in sectors deemed critical to public health and economic resilience.

China is one of the EU’s largest trading partners in medical devices, accounting for 11% of exports in 2022. However, EU firms have struggled for years to penetrate China’s public procurement market, long criticised for its “Buy China” policy.

With tensions mounting ahead of next month’s summit, Wednesday’s announcement is expected to further strain relations while setting a precedent for the EU’s future trade enforcement strategy.