Latest news with #IPI
Yahoo
8 hours ago
- Business
- Yahoo
EU imposes medical device procurement restrictions on Chinese firms
The European Commission (EC) will restrict Chinese companies from EU government purchases of medical devices exceeding €5m ($5.7m). The move comes after a report found that 87% of public procurement contracts for medical devices in China were subject to 'exclusionary and discriminatory measures' and practices against EU-made medical devices and EU suppliers. In addition, Chinese entities will now be restricted from around 60% of annual spending within the medical device field, with EU contracting authorities now ordered to ensure that up to 50% of a contract's value is subcontracted to Chinese entities or includes Chinese-origin medical devices. Initiated in April 2024 with the findings published in January 2025, the report guiding the EU's decision marked the first investigation under the EU's International Procurement Instrument (IPI) regulation of 2022, a law created to promote reciprocity in access to international public procurement markets. China is the second-largest medtech market worldwide. The EU's investigation concluded that Chinese policies, including its 'Made in China 2025' economic roadmap, favoured domestic medical devices over imported ones by design. The EC also observed that China's volume-based procurement of medical devices forces bidders to offer the lowest possible price, and that the contracting authorities set a maximum reference price and maximum price margins for bid selection. The commission stated that the European procurement market is still one of the most open in the world, highlighting that Chinese medical device exports to the EU more than doubled between 2015 and 2023. The EC stated that it had made repeated efforts to engage with Chinese authorities regarding the lack of reciprocity and to seek a constructive and fair solution that would enable EU companies to access the Chinese market on terms comparable to those enjoyed by Chinese firms in the EU. However, the EC stated that China had 'so far not offered specific commitments that would address the discriminatory measures and practices identified'. The EC backed the restrictions earlier this month. Writing in state news outlet Xinhua, China's Ministry of Commerce (MoC) opposed the plans, branding the EU's move 'protectionist'. The ministry wrote: 'As responsible major economies, China and the EU should adhere to WTO [World Trade Organization] rules, uphold the principles of fairness, transparency and non-discrimination, address challenges through mutual openness, and resolve differences through cooperative dialogue to jointly safeguard the healthy development of China-EU economic and trade relations.' The EC stated that should China offer 'concrete, verifiable, and satisfactory solutions that effectively address the concerns identified', the IPI framework allows for the suspension or withdrawal of measures. Maroš Šefčovič, European Commissioner for Trade and Economic Security; Interinstitutional Relations and Transparency, commented: 'Our aim with these measures is to level the playing field for EU businesses. We remain committed to dialogue with China to resolve these issues.' "EU imposes medical device procurement restrictions on Chinese firms" was originally created and published by Medical Device Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Euronews
12 hours ago
- Business
- Euronews
EU shuts out Chinese medical suppliers from European market
The European Commission has formally introduced restrictions previously reported by Euronews in response to what it describes as discriminatory barriers imposed by China against European medical device manufacturers. Following a detailed investigation, the Commission found "clear evidence" that China had been unfairly blocking EU-made medical devices from its public procurement market. This marks the first countermeasure taken under the International Procurement Instrument (IPI), which came into force in August 2022 to promote fair access for EU firms to procurement opportunities outside the bloc. 'Our aim with these measures is to level the playing field for EU businesses. We remain committed to dialogue with China to resolve these issues,' said Trade Commissioner Maroš Šefčovič. Under the new rules, Chinese companies are barred from bidding on public contracts for medical devices in the EU single market that exceed €5 million. Additionally, successful bids must contain no more than 50% of inputs originating from China. According to the Commission, the measures are proportionate to China's own restrictions and are designed to ensure the continued availability of critical medical equipment for EU healthcare systems. Exceptions will apply in cases where no viable alternative suppliers are available. The Commission pointed out that the decision aligns with international trade obligations, including those under the World Trade Organization (WTO), noting that the EU has no binding procurement commitments with China. EU-based medical device companies have long struggled to access China's procurement market, despite China being one of the bloc's largest export destinations for such products, accounting for 11% of exports in 2022. The Commission's investigation focused on China's government procurement law, which enforces a "Buy China" policy, requiring public institutions to prioritise domestic products and services. The probe identified several barriers faced by EU firms, including opaque approval processes, discriminatory certification practices, ambiguous national interest clauses used to exclude foreign suppliers, and unsustainable pricing requirements. According to a 2025 Commission report, 87% of public procurement contracts for medical devices in China were subject to exclusionary and discriminatory practices against EU suppliers. The new EU measures come at a delicate moment in EU-China relations, which are undergoing a cautious diplomatic reset. Both sides have intensified efforts to manage longstanding disputes amid shifting global dynamics, including the aftermath of the Trump-era trade wars and ongoing US-China tensions. A key milestone in this renewed dialogue is the upcoming EU-China Summit, now scheduled to take place in Beijing in the second half of July 2025. Meanwhile, reciprocal actions continue to define the trade relationship. China has extended its anti-dumping investigation into EU pork imports by six months, while the EU recently imposed tariffs of up to 45% on Chinese electric vehicles (EVs), reflecting a strategic pattern of targeting politically sensitive industries ahead of high-level negotiations.
The Sun
4 days ago
- Business
- The Sun
BNM, govt to work on implementing ‘RESET' initiative to address high medical inflation
KUALA LUMPUR: Bank Negara Malaysia (BNM) and the government are working on implementing the RESET initiative to address the high medical inflation in Malaysia. BNM governor Datuk Seri Abdul Rasheed Ghaffour said the initiative is a joint commitment undertaken with the Ministry of Health and the Ministry of Finance (MOF) aimed at revamping medical and health insurance and takaful. He stated that the RESET initiative would also serve to enhance price transparency, strengthen digital health systems, expand cost-effective care options and transform provider payment mechanisms. 'The success of RESET hinges on the involvement of all stakeholders in building a more accessible and resilient healthcare system and formulations,' he said in his welcoming address at the Sasana Symposium 2025, here today. Abdul Rasheed added that more details on RESET and the broader healthcare reforms will be discussed in the panel session entitled 'Rising Cost, Rising Stakes: Expediting Reforms to Address Medical Inflation', which will be held tomorrow, June 18. The session will feature Abdul Rasheed alongside Health Minister Datuk Seri Dr Dzulkefli Ahmad, Treasury secretary-general Datuk Johan Mahmood Merican and World Bank senior economist Aakash Mohpal. Meanwhile, Abdul Rasheed emphasised that structural reforms require a whole-of-nation approach, and one area where this was on full display is in the healthcare reforms, where rising medical inflation demands a more coordinated approach. The central bank governor noted that against the backdrop of economic uncertainties, open discourse is vital for gathering the best ideas to enable Malaysia to respond effectively to external challenges while continuing to drive structural reforms for the country. 'We are approaching this environment from a position of strength. The latest high-frequency indicators, such as the manufacturing industrial production index (IPI), services, exports and wages, point toward a resilient growth of the Malaysian economy,' he added.
The Sun
4 days ago
- Business
- The Sun
BNM, govt launch RESET to tackle medical inflation
KUALA LUMPUR: Bank Negara Malaysia (BNM) and the government are working on implementing the RESET initiative to address the high medical inflation in Malaysia. BNM governor Datuk Seri Abdul Rasheed Ghaffour said the initiative is a joint commitment undertaken with the Ministry of Health and the Ministry of Finance (MOF) aimed at revamping medical and health insurance and takaful. He stated that the RESET initiative would also serve to enhance price transparency, strengthen digital health systems, expand cost-effective care options and transform provider payment mechanisms. 'The success of RESET hinges on the involvement of all stakeholders in building a more accessible and resilient healthcare system and formulations,' he said in his welcoming address at the Sasana Symposium 2025, here today. Abdul Rasheed added that more details on RESET and the broader healthcare reforms will be discussed in the panel session entitled 'Rising Cost, Rising Stakes: Expediting Reforms to Address Medical Inflation', which will be held tomorrow, June 18. The session will feature Abdul Rasheed alongside Health Minister Datuk Seri Dr Dzulkefli Ahmad, Treasury secretary-general Datuk Johan Mahmood Merican and World Bank senior economist Aakash Mohpal. Meanwhile, Abdul Rasheed emphasised that structural reforms require a whole-of-nation approach, and one area where this was on full display is in the healthcare reforms, where rising medical inflation demands a more coordinated approach. The central bank governor noted that against the backdrop of economic uncertainties, open discourse is vital for gathering the best ideas to enable Malaysia to respond effectively to external challenges while continuing to drive structural reforms for the country. 'We are approaching this environment from a position of strength. The latest high-frequency indicators, such as the manufacturing industrial production index (IPI), services, exports and wages, point toward a resilient growth of the Malaysian economy,' he added.
BusinessToday
4 days ago
- Business
- BusinessToday
Maybank Estimates April GDP Lower At 4.8%, Reflects Recent IPI Data
Malaysia's economic growth moderated in April 2025, with Maybank Research estimating gross domestic product (GDP) expansion at 4.8% year-on-year, down from 6.0% in March and 6.2% in April last year. The slowdown reflects a mixed bag of industrial and trade performance, with strength in manufacturing and exports partially offset by weaker mining output and softer consumer demand. The moderation was largely driven by a weaker Industrial Production Index (IPI), which grew 2.7% year-on-year in April compared to 3.2% in March. While manufacturing activity picked up to 5.6% (Mar: +4.0%), sharp declines in mining (-6.3%) and continued contraction in electricity output (-1.6%) weighed on overall industrial growth. Manufacturing gains were powered by stronger output in both export-oriented and domestic industries. Export-oriented production rose 6.4% (Mar: +4.8%), with notable growth in: Electronics & Electricals: +9.9% (Mar: +13.2%) Vegetable & Animal Oils & Fats: +22.8% (Mar: +10.6%) Chemicals & Chemical Products: +4.7% (Mar: +4.9%) Domestic-oriented manufacturing also saw steady expansion at 3.9% (Mar: +2.3%), supported by increased production of food processing products, fabricated metal goods, basic metals, and non-metallic mineral products. The drag from the mining sector was significant, reflecting lower production of crude oil and condensates (-0.7%) as well as natural gas (-10.0%). Electricity output declined for the second straight month. However, crude palm oil (CPO) production rebounded sharply (+12.3%) after a brief contraction in March. Domestic trade activity lost some momentum, with the Distributive Trade Index rising 4.3% in April (Mar: +5.0%). Retail trade growth slowed to 3.4% (Mar: +4.9%), while motor vehicle sales remained tepid at 0.8%. Wholesale trade, however, posted a slight improvement at 6.6% (Mar: +6.3%). Malaysia's external trade saw strong recovery in April, with export values surging 16.4% year-on-year and volumes up 15.6%. Imports also jumped by 20.0% in value and 24.5% in volume, following contractions in March. Despite this rebound, the downtrend in intermediate goods imports raises caution about future manufacturing momentum. Private Consumption Holds Steady Private consumption remained resilient in the first four months of the year, with retail trade growing 4.7% year-on-year—slightly ahead of 2024's pace of 4.4%. Maybank maintains its full-year forecast for private consumption growth at 5.3%, supported by a healthy job market and various government initiatives, including: Civil service pay and pension reviews Minimum wage hikes Increased cash assistance under Budget 2025 Income tax reliefs for the middle-income group The investment upcycle appears to be continuing, with strong capital goods imports and steady financing for industrial construction indicating sustained business confidence. However, Maybank cautioned that the trajectory could face headwinds if the weakness in intermediate goods imports persists. While April's data showed mixed signals, Maybank notes that Malaysia's economy continues to find support from domestic demand and export recovery. However, with certain leading indicators pointing to a possible softening ahead, the growth trajectory for the remainder of the year remains subject to downside risks. Related
