EU Investigates China’s Alleged Blocking of Medical Device Market

The European Union initiated an investigation on Wednesday to determine if China is engaging in unfair practices that limit European access to its medical device market. This sector includes everything from simple hypodermic needles to advanced scanning technology. The European Commission, which serves as the EU’s executive arm and oversees trade and competition, launched the probe as part of a broader effort to secure equitable market access in China comparable to that which Chinese companies enjoy within Europe.

Valdis Dombrovskis, the commission’s trade chief, emphasized the importance of open markets for fostering business growth, consumer benefits, and innovation globally. He expressed regret over the lack of progress in discussions with China regarding this trade concern, despite repeated attempts to address it.

The investigation could lead to the EU restricting Chinese access to its market if the issue remains unresolved. The Commission highlighted a significant increase, over 100%, in Chinese medical device exports to Europe from 2015 to 2023. Evidence suggests that European firms and products are increasingly shut out from the Chinese market due to policies that unfairly favor local companies over their European counterparts, although specific impacts on European businesses were not detailed.

Countries like France, Germany, Italy, and the Netherlands are reportedly among the most affected. The large scale of the medical device market means the repercussions potentially extend to many major companies as well as numerous small and medium-sized enterprises across Europe.

The inquiry’s initial phase involves sending a questionnaire to Chinese authorities and could last between nine to 14 months. While the European Commission hopes that taking action will not be necessary, it aims to ensure fair treatment in market access. Spokesman Olof Gill articulated the expectation for China’s public procurement market to be as open to European entities as Europe’s market is to Chinese firms.

In response, China accused the EU of leaning towards protectionism. Chinese Foreign Ministry spokesperson Wang Wenbin defended China’s market openness and urged the EU to maintain its commitment to open markets and fair competition. Wang emphasized adherence to World Trade Organization rules and cautioned the EU against baselessly oppressing and limiting Chinese businesses under various pretexts.