China announced on Sunday that it will restrict European Union medical device companies from selling to the Chinese government, in a retaliatory move against recent EU procurement restrictions targeting Chinese firms. According to a statement from China's Ministry of Finance, European companies will be barred from participating in public procurement tenders valued over 45 million yuan ($6.28 million). The measure came into effect the same day and will apply only to companies that do not manufacture their products within China. European firms with production facilities inside China will be exempt. The move marks the latest escalation in trade tensions between Beijing and Brussels. On Friday, China also imposed anti-dumping duties on European brandy imports — with French cognac producers most affected — though some major brands received limited exemptions. China and the EU have been locked in a series of trade disputes across various sectors. Tensions intensified after the EU announced in June that Chinese suppliers would be excluded from government contracts exceeding €5 million ($5.89 million), citing China's "recurring legal and administrative barriers" to EU firms. The European Commission said the restrictions aim to incentivize China to open its public procurement market and end discriminatory practices. China's Ministry of Commerce responded by accusing the EU of protectionism. "China has repeatedly expressed its willingness to resolve differences through dialogue and bilateral consultation," a ministry spokesperson said. "Unfortunately, the EU has ignored this goodwill and imposed new restrictive measures." The tit-for-tat measures have added strain to an already complex economic relationship, with additional investigations ongoing into European pork and dairy exports to China, and EU tariffs on Chinese-made electric vehicles still under review. — Agencies
