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EU acts under ‘level playing field’ rule

The European Commission has taken its first action under a mechanism designed to ensure a level playing field for EU companies tendering for business in countries around the world. 

The commission has decided to exclude Chinese companies from EU government purchases of medical devices worth more than €5 million, while allowing no more than 50% of inputs from China for successful bids. 

The decision comes after an investigation carried out under the International Procurement Instrument (IPI), which came into force in 2022, with the aim of encouraging the reciprocal opening of public-procurement markets to EU economic operators. 

The commission says that the measures are consistent with the EU's international obligations – including under the WTO framework – as the EU has no binding procurement commitments with China. 

China’s ‘barriers’ 

The EU body says that its response is “proportionate to China's barriers”, while ensuring that all the necessary medical devices are available for the EU healthcare system. It adds that exceptions will be made where no alternative suppliers exist. 

“The measure seeks to incentivise China to cease its discrimination against EU firms and EU-made medical devices and treat EU companies with the same openness as the EU does with Chinese companies and products,” the commission says. 

It says that, while Chinese exports of medical devices to the EU more than doubled between 2015 and 2023, at the same time China has erected “significant and recurring legal and administrative barriers” to its procurement market. 

The EU body says that China has not yet offered any specific commitments that would address its concerns. 

“Our aim with these measures is to level the playing field for EU businesses. We remain committed to dialogue with China to resolve these issues,” said Maroš Šefčovič (Commissioner for Trade).