China blocks EU companies from medical device contracts in tit-for-tat move

China has barred European companies from major Chinese government medical device contracts, hitting back against similar EU restrictions imposed on Chinese firms last month.

In a notice on Sunday, the Ministry of Finance said that European Union companies without operations in China were excluded from government medical device contracts valued at more than 45 million yuan (US$6.3 million).

Taking effect on Sunday, the restriction does not apply to EU-funded companies operating in China.

Non-EU companies taking part in such government tenders must not allocate more than half of the total contract value to importing medical devices from the EU, according to the finance ministry.

The Ministry of Commerce said the move was a last resort, after Beijing had “repeatedly expressed through bilateral dialogues its willingness to resolve the differences through consultation and arrangements on government procurement”.

“Despite China’s goodwill and sincerity, the EU has persisted in taking restrictive measures and building new protectionist barriers,” it said.

“As a result, China has no choice but to adopt reciprocal countermeasures.”