China Criticizes EU Medical Device Public Procurement Rules, Citing Unfair Competition
Tokyo, Japan – June 26, 2025 – The Japan External Trade Organization (JETRO) reported today that China has lodged strong objections to the European Union’s public procurement regulations for medical devices. Beijing argues that these new rules are discriminatory and hinder fair competition, potentially impacting international trade in the vital healthcare sector.
The statement, published on June 26, 2025, at 06:35 JST by JETRO, highlights a significant point of contention between China and the EU in the global medical technology market. While the specifics of the EU’s regulations are not detailed in the JETRO announcement, the core of China’s criticism centers on the perceived unfair advantage these rules might grant to European manufacturers.
What are Public Procurement Rules and Why are They Important?
Public procurement refers to the process by which governments and public entities purchase goods and services. In the context of medical devices, this means hospitals, clinics, and other healthcare institutions funded by taxpayers or public bodies are buying everything from bandages and syringes to advanced imaging equipment and surgical robots.
These procurement processes are crucial because:
- They represent a massive market: Public healthcare systems are major consumers of medical devices, making them a significant driver of sales and innovation for manufacturers.
- They influence industry standards: Procurement decisions can favor products that meet specific technical or quality standards, effectively shaping what is available in the market.
- They impact access to healthcare: The cost and availability of medical devices directly affect the quality and accessibility of healthcare services for citizens.
China’s Concerns: Protectionism or Legitimate Grievance?
China’s strong reaction suggests that it believes the EU’s new regulations may contain provisions that:
- Favor EU-based manufacturers: This could be through preferential treatment in bidding processes, higher thresholds for non-EU companies, or requirements for local content.
- Impose burdensome requirements on foreign suppliers: These might include complex registration procedures, extensive testing requirements, or stringent intellectual property protection demands that are difficult for Chinese companies to meet.
- Create barriers to entry: Ultimately, China fears that these rules will make it harder for its medical device companies to compete for lucrative public contracts within the EU.
The EU’s Likely Rationale:
While China views these regulations as protectionist, the EU likely frames them within broader objectives, such as:
- Ensuring the quality and safety of medical devices: The EU has some of the most stringent regulations globally for medical devices, and procurement rules often align with these standards to ensure patient safety.
- Promoting innovation and technological advancement: The EU might aim to encourage the development and adoption of cutting-edge medical technologies within its own market.
- Ensuring fair and transparent competition: While China perceives unfairness, the EU may argue its rules are designed to create a level playing field by setting clear and objective criteria.
- Reciprocity: In some cases, trade blocs may adjust their procurement rules in response to practices in other major markets, seeking reciprocal treatment for their own companies.
Broader Implications for Global Trade:
This dispute between China and the EU over medical device procurement highlights several ongoing trends in international trade:
- The increasing importance of healthcare as an economic sector: With aging populations and advancements in medical technology, the medical device market is a significant area of economic activity and strategic competition.
- The rise of protectionist tendencies: As countries seek to bolster their domestic industries and secure critical supply chains, there’s a growing tendency to use procurement policies to favor local businesses.
- The complex interplay between trade and regulation: Increasingly, regulations, even those seemingly focused on domestic policy (like healthcare standards), can have significant international trade implications.
What Happens Next?
The JETRO report indicates that this is a developing situation. China’s public criticism suggests it will likely pursue diplomatic channels and potentially raise the issue within international trade bodies like the World Trade Organization (WTO) if it believes its concerns are not adequately addressed. The EU, in turn, will likely defend its regulations by emphasizing their focus on quality, safety, and fair competition within its legal framework.
The outcome of this dispute could have a ripple effect on other sectors and future trade negotiations, as countries assess how to navigate the evolving landscape of global public procurement in critical industries like healthcare.
For businesses in the medical device sector, particularly those operating internationally, staying informed about these regulatory developments and understanding the implications for market access is crucial.
中国、EUの医療機器公共調達規制に反対、公平な競争の阻害と批判
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The following question was used to generate the response from Google Gemini:
At 2025-06-26 06:35, ‘中国、EUの医療機器公共調達規制に反対、公平な競争の阻害と批判’ was published according to 日本貿易振興機構. Please write a detailed article with related information in an easy-to-understand manner. Please answer in English.