The European Union has voted to restrict Chinese medical device suppliers from accessing its public procurement market, escalating trade tensions between the two economic giants. The move, approved by EU member states this week, targets contracts worth over €5 million ($5.4 million) and will last five years. 🏥💼
Why Now?
The decision follows a January EU probe alleging favoritism toward Chinese firms in procurement processes. It marks the first use of the bloc’s International Procurement Instrument, aimed at ensuring "reciprocity" in market access. Meanwhile, EU Trade Commissioner Maros Sefcovic is set to meet China’s Commerce Minister Wang Wentao in Paris amid rising friction over recent EV tariffs and Chinese measures affecting EU brandy exports. 🤝🌐
China Pushes Back
China’s Chamber of Commerce to the EU called the decision "profoundly disappointing," noting European medical device companies already enjoy significant access to China’s market. State media Xinhua emphasized China’s commitment to "opening up" despite global protectionist trends, framing the country as a stabilizing force in uncertain times. 🇨🇳📉
What’s Next?
Analysts warn the restrictions could deepen economic divides, with Reuters noting parallels to recent EV trade disputes. As both sides prepare for talks, the world watches to see if diplomacy can cool tensions—or if this is the latest flashpoint in a widening trade war. 🔥💡
