Sure, here’s a detailed article about China’s new policy on government procurement of medical devices, written in an easy-to-understand manner in English:
China Tightens Grip on Medical Device Procurement: EU Firms and Products Face New Restrictions
Tokyo, Japan – July 9, 2025 – The Japan External Trade Organization (JETRO) reported today that China has implemented a new policy restricting the government procurement of medical devices exceeding a certain value, specifically targeting European Union (EU) companies and products manufactured within the EU. This move signals a significant shift in China’s approach to acquiring medical technologies, potentially impacting the global medical device market and the strategies of international suppliers.
The announcement, published on July 9, 2025, at 02:00 JST, indicates that China is moving towards prioritizing domestic production or sourcing from specific countries, while creating hurdles for EU-based businesses and their products in a substantial segment of its vast healthcare market.
What Does This Mean for EU Medical Device Companies?
For companies based in the EU that export medical devices to China, this news represents a considerable challenge. The “certain amount” threshold is a critical detail that will determine the extent of the impact. If this threshold is set at a level that covers a significant portion of high-value medical equipment, such as advanced imaging machines, surgical robots, or specialized diagnostic tools, then EU manufacturers could see a substantial decrease in their government sales in China.
This policy could lead to:
- Reduced Market Access: EU companies may find it significantly harder to secure contracts for supplying medical devices to Chinese government-funded healthcare institutions.
- Increased Competition from Domestic Players: The restrictions are likely intended to boost China’s domestic medical device industry. Chinese manufacturers will likely receive preferential treatment, potentially leading to a surge in their market share for government-backed projects.
- Need for Strategic Partnerships or Localized Production: To circumvent these restrictions, EU companies might need to consider establishing manufacturing facilities within China or forming strong partnerships with Chinese entities. This would allow them to offer “domestic” products or to have a more integrated presence in the Chinese market.
- Focus on Private Healthcare Sector: While government procurement is a major channel, EU companies might need to shift their focus more towards the burgeoning private healthcare sector in China, which may not be subject to the same stringent procurement rules.
- Potential for Retaliatory Measures: It remains to be seen how the EU will react to this policy. There’s a possibility of diplomatic discussions or even retaliatory measures if the EU perceives this as discriminatory trade practice.
Why is China Implementing Such a Policy?
Several underlying reasons could be driving China’s decision:
- Industrial Policy and Domestic Manufacturing Growth: China has been increasingly focused on developing its indigenous technological capabilities across various sectors, including healthcare. This policy aligns with that broader strategy of fostering domestic innovation and production. By limiting foreign access to government contracts, China aims to provide a protected market for its own medical device manufacturers to grow and compete.
- Supply Chain Security and Self-Sufficiency: In an era of global uncertainties and geopolitical tensions, China, like many other nations, is prioritizing supply chain resilience and self-sufficiency. By reducing reliance on foreign suppliers for critical medical equipment, China aims to ensure it has uninterrupted access to essential technologies, especially during national emergencies.
- Economic Considerations: Supporting domestic industries can also have significant economic benefits, including job creation, intellectual property development within China, and retaining capital within the country.
- Technological Advancement: China aims to move up the value chain in the medical device sector. By pushing its domestic companies to innovate and compete, it seeks to achieve greater technological independence and leadership in the long run.
What is “Government Procurement”?
Government procurement refers to the process by which public authorities (such as government ministries, hospitals, and state-owned enterprises) purchase goods and services. In the context of medical devices, this means that hospitals and healthcare facilities that are funded or operated by the Chinese government will be subject to these new restrictions when acquiring medical equipment.
Implications for the Global Medical Device Market:
This development could have ripple effects across the global medical device industry:
- Shift in Market Dynamics: Companies from countries other than the EU might find themselves in a more favorable position if they are not subject to similar restrictions.
- Increased Investment in Chinese Medical Device Companies: The policy could spur investment in Chinese medical device startups and established players, accelerating their growth and innovation.
- Impact on Research and Development: EU companies might re-evaluate their R&D strategies, potentially focusing more on markets that offer more open access.
Looking Ahead:
The exact details of the “certain amount” threshold and the specific types of medical devices affected will be crucial in understanding the full scope of this policy. Companies, especially those with a significant presence in the Chinese market, will need to closely monitor further announcements and adapt their business strategies accordingly. This move by China underscores the evolving landscape of global trade and the increasing importance of understanding national industrial policies when operating in key international markets.
For businesses relying on the Chinese government procurement market, this is a clear signal to adapt, innovate, and potentially diversify their strategies to navigate these new protective measures.
中国、一定額以上の医療機器の政府調達でEU企業・EU域内製品の参入を制限
The AI has delivered the news.
The following question was used to generate the response from Google Gemini:
At 2025-07-09 02:00, ‘中国、一定額以上の医療機器の政府調達でEU企業・EU域内製品の参入を制限’ 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.