EU Launches Investigation into Chinese Medical Equipment Purchases

Following the investigation into electric cars, EU launches a new investigation concerning China. The case involves medical equipment purchases under the International Procurement Instrument (IPI), adopted in June 2022 to help open up overseas procurement markets for European companies. This move risks further escalating tensions between Beijing and the European institution. In fact, there have been statements from China that define Brussels’ activities as “protectionist actions” that undermine the competitive environment.

But a fair competitive environment is what the EU is also demanding in statements from its representatives collected by Italian news agency ANSA: “The ultimate goal is always a level playing field. We expect China’s public procurement market to be as open for us as ours is to them.” It is also explained that the aim is dialog and only if that fails will “alternatives” be considered.

The investigation was featured in the Official Journal of the EU, and reference was made in particular to Article 10 of the Public Procurement Law of the People’s Republic of China, i.e. the “Buy China” policy, which essentially states that public bodies must purchase goods and services from domestic suppliers, with few exceptions. Brussels also fears import restrictions and conditions that are essentially intolerable for profit-oriented companies.

The measures taken by Beijing “create substantial and systemic damage to economic operators, goods, and services of the Union, as they systematically favor the purchase of national products to the detriment of imported products or place the participation of operators in procurement in a discriminatory position for the economic interests of the Union,” the EU document says.