The European Union has “agreed overwhelmingly” to limit Chinese medical device manufacturers’ access to public procurement contracts in Europe, Bloomberg reports.
On Monday June 2, 2025, European Union (EU) countries reportedly voted to ban Chinese-based medical device manufacturers from bidding on public European contracts worth more than €5 million ($5.7 million) for a five-year period.
This move marks the first-ever use of the EU’s International Procurement Instrument (IPI), a 2022 law designed to ensure reciprocity in access to public procurement contracts. The law lays down procedures for the European Commission to investigate alleged practices negatively affecting the access of EU goods to non-EU procurement markets, and to impose measures to restrict access to EU public procurement contracts.
The EU’s decision is a response to findings that European medical device firms face unfair barriers in China’s public procurement market. A European Commission investigation published in January 2025 found that 87% of more than 380,000 Chinese procurement tenders conducted from January 2017 to May 2024 contained restrictions against foreign medical devices. The investigation was focused on China’s so-called “Made in China 2025” policy, which mandates government entities to prioritize domestic goods. A 2025 report by the U.S. Chamber of Commerce found that China’s Made in China 2025 policy has led to substantial state support, helping Chinese companies reduce imports and gain global market share in the medical device sector.
Trade analysts suggest this could increase Europe-China trade tensions, coming shortly after Europe implemented tariffs on Chinese electric vehicles in an effort to combat what it considered to be an unfair level of state subsidies. China’s government has allegedly criticized Europe’s most recent move, calling it a “step towards protectionism.”
According to Medtech Europe, the trade association that represents Europe’s medical technology industries, China accounted for approximately 11% of European medical technology exports in 2022, and approximately 17% of Europe’s imports.
Tags
China, Europe, European Commission, International Procurement Instrument, Made in China 2025, medical device, public procurement contract, Tariffs
