In a tit-for-tat move, China has decided to bar the purchase of medical devices from companies in the European Union (EU) if the budget for procurement is about 45 million yuan ($6.28 million), said a statement from the country’s Finance Ministry early this week.
The restrictions, which are already in place, will however not apply to European countries that have invested in China and that manufacture goods in the country.
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On Friday, China had imposed anti-dumping duties on European brandy, most notably Cognac, which is produced in France. While the duties on brandy include several exceptions for major brandy producers, China and the EU have been engaged in trade disputes across a range of industries.
After many European countries levied duties on EVs (electric vehicles) made in China, the latter launched investigations into European pork and dairy products as a countermeasure.
In June this year, the spat between the two trading partners turned ugly after the EU accused China of erecting “significant and recurring legal and administrative barriers to its procurement market” and announced that Chinese companies were to be excluded from any government purchases of more than 5 million euros ($5.89 million). The European bloc said it sought to incentivise China through this measures to cease its discrimination against EU firms.
In response, China said it had “no choice but to implement countermeasures”, lamenting that the EU had “ignored China’s goodwill and sincerity”.
“China has repeatedly expressed through bilateral dialogues that it is willing to properly handle differences with the EU through dialogue and consultation and bilateral government procurement arrangements,” said a statement from a spokesman with the Ministry of Commerce, adding that “unfortunately, the EU still insisted on taking restrictive measures and building new protectionist barriers.”
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