China’s Ministry of Finance announced Sunday that it will impose restrictions on government purchases of European Union-made medical equipment valued over 45 million yuan (about $6.3 million), in retaliation for new trade barriers introduced by Brussels.
Tensions between Beijing and the EU have escalated in recent months, with the EU imposing tariffs on Chinese-made electric vehicles and China responding with duties on alcohol imports from the bloc.
Last month, the European Commission revealed it would ban Chinese companies from participating in public tenders for medical devices worth over €60 billion annually, citing unequal access for European firms to China’s domestic market. This move was based on the EU’s International Procurement Instrument (IPI), which came into force in 2022 to promote reciprocal market access.
China’s countermeasures had been anticipated after the Ministry of Commerce signaled it would take “necessary actions” in response to the EU’s decision.
“Unfortunately, despite China’s goodwill and sincerity, the EU insisted on taking restrictive measures and erecting new protectionist barriers,” the Ministry of Commerce said in a statement on Sunday.
“Therefore, China has no choice but to adopt reciprocal restrictions.”
The Ministry of Finance added that China will also restrict imports of medical devices from other countries if those devices contain more than 50% of components made in the EU.
These restrictions take effect immediately.
However, the Ministry clarified that European companies operating within China will not be affected by the new rules.
On Friday, China also announced tariffs of up to 34.9% over five years on EU alcohol imports—mostly French cognac—following a probe widely seen as retaliation for EU tariffs on Chinese EVs. Major cognac producers such as Pernod Ricard, LVMH, and Rémy Cointreau were exempted, provided they sell at a minimum price, the details of which have not been disclosed.
