The EU Takes Measures to Protect its Companies
In an effort to address trade imbalance and unfair practices, the European Union (EU) has launched an investigation into the marginalization of European health products in the Chinese market. This investigation marks a significant step in the EU’s efforts to protect its companies and ensure fair competition.
The International Public Procurement Instrument
For the first time, the EU has activated the International Public Procurement Instrument (IPI), designed to combat unfair practices in public markets. This tool, conceived a decade ago, aims to address the imbalance and unfair competition that European companies face in China.
The Chinese Market: An Obstacle for European Health Products
The EU investigation aims to gather evidence on the discriminatory practices faced by European healthcare products in China. Evidence suggests that the Chinese market has been gradually closing its doors to European and foreign companies, favoring local producers.
China’s Discriminatory Measures
Chinese policies require hospitals to purchase 70% of their medical devices domestically manufactured by 2025. In addition, import restrictions and unfair conditions for the procurement of medical devices have created an unfavorable environment for European companies.
The EU Response: Research and Dialogue
Before launching a formal procedure, the EU attempted to address the issue with the Chinese authorities, but did not receive satisfactory responses. The investigation aims to collect evidence and open a dialogue to eliminate discriminatory measures.
Deadlines and Consequences
The EU has set a six-month deadline for China to remove barriers or reach a compromise. If an agreement is not reached, the EU could impose reciprocity measures, such as adjustments to selection processes or even the exclusion of Chinese medical products from public tenders.
The Broader Context: The EU-China Relationship
The investigation into the medical devices comes amid a broader debate about the EU’s relationship with China. The EU recognizes China as a partner, competitor and systemic rival. Despite the EU’s efforts to strengthen its presence in China, the Chinese regime has imposed barriers that have hindered access for European companies.
Global Competition and Trade Fragmentation
The EU recognizes the need to strengthen its strategic autonomy and reduce dependencies in key areas. The fragmentation of international trade, with a share of 60% of GDP for the EU, 38% for China and 27% for the United States, poses additional challenges. The EU’s export share has decreased in recent years.
Conclusion: The Determination of the EU
The EU investigation into the marginalization of European health products in China is a testament to the EU’s determination to protect its companies and ensure fair competition. The EU is ready to take measures to address unfair practices and promote a level playing field for its companies in the global market.