EU bars China firms from major medical equipment deals
BRUSSELS: The European Union (EU) yesterday banned Chinese firms from government medical device purchases worth more than €5 million (RM25 million) in retaliation for limits Beijing places on access to its own market.
The latest salvo in trade tensions between the 27-nation bloc and China covers a wide range of healthcare supplies, from surgical masks to X-ray machines, that represent a market worth €150 billion in the EU.
'Our aim with these measures is to level the playing field for EU businesses,' the bloc's trade commissioner Maros Sefcovic said.
'We remain committed to dialogue with China to resolve these issues.'
In response, China accused the EU of 'double standards'.
'The EU has always boasted that it is the most open market in the world, but in reality, it has gradually moved towards protectionism', foreign ministry spokesman Guo Jiakun said at a regular press briefing.
'Under the guise of fair competition (the EU) actually carries out unfair competition, which is a typical case of double standards.'
The European Commission said in a statement the move was in 'response to China's longstanding exclusion of EU-made medical devices from Chinese government contracts.'
Brussels said just under 90% of public procurement contracts for medical devices in China 'were subject to exclusionary and discriminatory measures' against EU firms.
In addition to barring Chinese firms from major state purchases, 'inputs from China for successful bids' would also be limited to 50%, it said.
Over the last three years, Brussels and Beijing have come into conflict in a number of economic sectors, including electric cars, the rail industry, solar panels and wind turbines.
The decision on medical devices comes at a time of heightened trade tensions with President Donald Trump, which has imposed customs surcharges on imports from all over the world, including Europe.
The EU has decided to take a tougher stance on trade in recent years, adopting a vast arsenal of legislation to better defend its businesses against unfair competition.
In April 2024, the commission opened an investigation into Chinese public contracts for medical devices, the first under a new mechanism introduced by the EU in 2022 to obtain better access to overseas state purchases.
China, on the other hand, accuses Europe of protectionism.
After a year of negotiations, the commission, which manages trade policy on behalf of the 27 member states, said it had failed to make any progress with China.
'The measure seeks to incentivise China to cease its discrimination against EU firms and EU-made medical devices and treat EU companies with the same openness as the EU does with Chinese firms and products,' Brussels said. – AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Barnama
22 minutes ago
- Barnama
Geneva Meeting Begins In Bid To Halt Escalating Israel-Iran Conflict
GENEVA, June 20 (Bernama-Anadolu) -- A crucial international meeting aimed at halting the hostilities between Israel and Iran began Friday in Geneva, marking the start of an intensive two-week diplomatic effort to prevent a wider conflict in the Middle East. British Foreign Secretary David Lammy, French Foreign Minister Jean-Noel Barrot, and German Foreign Minister Johann Wadephul are holding talks with Iranian Foreign Minister Abbas Araghchi to address Tehran's nuclear activities and identify potential diplomatic off-ramps to avoid escalation. EU foreign policy chief Kaja Kallas is also attending the meeting, according to Anadolu Ajansi.
The Sun
2 hours ago
- The Sun
Chinese exports of rare-earth magnets plummet in May
BEIJING: Chinese exports of rare-earth magnets continued their downward slide in May, official data showed on Friday, reflecting restrictions imposed by Beijing during its trade war with the United States. China is the world's leading producer of rare earths, used to make magnets essential to the automotive, electronics and defence industries. Since April, Beijing has required traders to obtain licences before they export the strategic materials, a move seen as retaliation for US curbs on the import of Chinese goods. Many manufacturers, particularly in the automotive sector, have bewailed what they view as sporadic licence issuances. And Chinese customs data revealed Friday that the country's rare-earth magnet exports plummeted by 70 percent year-on-year in May, following an initial slowdown observed in April. Exports fell below the $60 million mark, hitting their lowest level since 2015 excluding the Covid-19 pandemic, according to Bloomberg News. After talks between China and the US in London this month, Beijing said it had issued a 'certain number' of export licences for rare earths. US President Donald Trump said last week on his Truth Social platform that 'any necessary rare earths... will be supplied, up front, by China'. Beijing also said it would launch a 'green channel' to facilitate rare earth exports to the European Union. But its exports of rare-earth magnets to the EU in May plunged by 81 percent year-on-year, according to the customs figures. And exports of small parcels to the US dropped by half compared to the previous month. Last month, Washington ended a tariff exemption previously enjoyed by low-value parcels shipped from China and Hong Kong. The measure dealt a severe blow to platforms shipping low-cost items from China, such as Shein and Temu. The decline was offset by a rise in China's total small parcel exports to the rest of the world, which were up 40 percent year-on-year, with particularly notable increases to Singapore, Russia, Europe and Australia. Besides the US, several countries have been trying to limit the rise of platforms sending cheap products made in China. This month, France adopted a bill that aims to curb fast fashion by banning advertising and imposing an additional tax on small parcels.
The Star
3 hours ago
- The Star
Legoland Shanghai a key brick to building toy brand in China
Lego has continued to be the biggest player in the construction toys market for 'kidults' in the Chinese market. — Xinhua SHANGHAI: The Lego Group is viewing China as a high-potential market, as the toymaker gears up to open its much-anticipated Legoland Shanghai Resort on July 5. Julia Goldin, chief product and marketing officer at Lego, said during her recent trip to Shanghai: 'With more than 400 retail stores across over 100 Chinese cities, we're committed to expanding our presence with a portfolio of products tailored for Chinese consumers.' The senior executive visited the city to activate the World Play Day with key events in Shanghai, Berlin, Boston and London. The initiative aims to inspire children and families to reimagine urban spaces through the lens of play. Launched last Wednesday, World Play Day, which opened at the West Bund Dream Centre, will run through July 27. The campaign comes as new research commissioned by Lego showed a growing disconnect between urban development and child-friendly planning. Nearly a third of the world's children live in urban areas, and this is projected to rise to 70% by 2050. Yet, many of these children feel overlooked in city planning. The study, which surveyed 10,000 parents and 10,000 children aged 6 to 16 across the world, including Britain, the United States, France and Poland, found that urban centres are generally falling short in providing safe and inclusive spaces for play. 'Play should not be limited to homes and schools. It should extend into our streets, parks and public spaces,' said Goldin. The Shanghai event coincides with a broader push by the toymaker to widen its reach in China, particularly in the year when Legoland Shanghai Resort is scheduled to open next month. Covering 318,000 square metres in the city's Jinshan district, the resort, which is the world's largest Legoland, comprises a theme park and a hotel for children aged two to 12 and their families. It features more than 75 interactive rides, shows and attractions, as well as thousands of Lego models made with over 85 million Lego bricks across eight immersive 'lands'. Goldin said that, in addition to the resort, locally relevant products, including the Shanghai Skyline set, the Lego Botanical Collection featuring Chinese flora, and the Monkie Kid series inspired by traditional Chinese mythology, are key to better resonating with local consumers. Niels B. Christiansen, chief executive officer of the group, said earlier this year that 2025 is a big year for the Lego brand in China, pointing to a series of brand activities designed to engage a wide spectrum of consumers, from children to adult fans. Clifton Chiu, senior analyst at Euromonitor International, said Lego has continued to be the biggest player in the construction toys market for 'kidults' in the Chinese market, with its roster of 18-plus sets. To engage with evolving fans worldwide, the toymaker is also leveraging global partnerships to tap into consumer passions beyond traditional toy play. The group recently teamed up with sportswear brand Nike and Formula 1 racing to integrate play into sports culture. Chiu said the number of brands Lego has collaborated with recently, such as Formula 1, has further increased its popularity by introducing racing fans to the Lego space. Goldin said of the team-ups: 'We only pursue these collaborations when we can add extra value to the passion point. — China Daily/ANN
