In light of escalating tensions over medical device procurement, China is advocating for the European Union (EU) to uphold its commitment to an open market and fair competition. This call comes as the EU considers imposing restrictions on Chinese medical device manufacturers following an investigation that alleges discrimination against EU producers in public tenders.
Background of the Dispute
The EU initiated its investigation in April 2024 under the International Procurement Instrument (IPI), aimed at promoting reciprocal access to public procurement markets. The investigation revealed that China has implemented a "Buy China" policy, which prioritizes domestic products and creates barriers for foreign companies, particularly in the medical device sector. This policy has raised concerns about fairness and transparency in procurement processes.
Reasons Behind the Appeal
China emphasizes the importance of adhering to World Trade Organization (WTO) rules and fostering a transparent, non-discriminatory business environment. The Chinese government argues that maintaining an open market is essential not only for fair competition but also for strengthening trade relations between China and the EU.
Details of the Investigation Findings
The findings from the EU’s investigation indicated that there is clear evidence of China limiting access for EU medical device producers to government contracts. Specific examples include complex certification processes and non-transparent approval systems that favor domestic products over imports. This has resulted in a significant decline in the number of approved imported medical devices, with statistics showing a drop from 132 approved devices in Guangdong Province in 2019 to just 46 in 2021.
Proposed Solutions and Next Steps
To address these concerns, both parties are encouraged to engage in constructive dialogue based on WTO principles. The EU has expressed a willingness to consult with Chinese authorities to find acceptable solutions before resorting to punitive measures, which could include restricting or excluding Chinese firms from bidding on public contracts within the EU.
The Importance of Reciprocal Openness
As major trading partners, both China and the EU have a vested interest in promoting reciprocal openness. Ensuring that both markets are accessible to each other’s companies is crucial for fostering equitable trade practices. This approach not only benefits individual businesses but also contributes to a more robust global economy.
Source: Global Times