China imposes restrictions on EU medical device procurement in response to EU banning Chinese companies

China has imposed restrictions on European medical device procurement in response to the EU banning Chinese companies from tenders over €5m. China set a threshold of 45 million yuan for restrictions. The EU’s investigation found China favored domestic devices. The Chinese commerce ministry has criticized the EU’s ban, leading to reciprocal measures to protect Chinese enterprises.

Since the pandemic, China’s demand for EU imports has decreased while exports have surged. Chinese healthcare market dominance is growing. MedTech Europe expressed concern over China’s restrictions impacting patient access to medical technologies. The policy excludes products made in China, benefiting companies like Siemens Healthineers and Philips.

Philips reported 33.3% higher losses in 2024 due to weaker demand in China. Siemens Healthineers stated that China restrictions will not materially impact its business. GE HealthCare and Roche have faced challenges due to China’s policies. Tensions with the US have also affected the global medtech industry financially.

The EU’s push for more EU components in healthcare may raise costs. Establishing local manufacture by Chinese firms with EU material input could be a solution. China may look to sell medtech products elsewhere at reduced prices. The frosty relations with the US complicate the situation.

Read more at Yahoo Finance: China hits back at EU ban with ‘tit-for-tat’ medical device restrictions