China retaliates against EU with ban on European medical devices

China on Sunday said European medical device companies will be barred from selling to the Chinese government as a countermeasure for the European Union's restrictions on the sale of similar products from China.

European companies will be excluded if the budget for procurement is above 45 million yuan ($6.28 million), according to a notice from the finance ministry on Sunday, with the restrictions in place the same day. The move will not apply to European companies that have invested in China and that manufacture goods in the country.

On Friday, China imposed anti-dumping duties on European brandy, most notably cognac produced in France. While the duties on brandy include several exceptions for major brandy producers, China and the EU have multiple trade disputes across a range of industries.

China protested after many European countries levied duties on EVs (electronic vehicles) made in China. Since then, China has also launched investigations into European pork and dairy products.

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In June, the EU announced that Chinese companies were to be excluded from any government purchases of more than 5 million euros ($5.89 million). The measure seeks to incentivise China to cease its discrimination against EU firms, the EU said, accusing China of erecting "significant and recurring legal and administrative barriers to its procurement market”.

In response, China has said it had “no choice but to implement countermeasures”.

“China has repeatedly expressed through bilateral dialogues that it is willing to properly handle differences with the EU through dialogue and consultation and bilateral government procurement arrangements,” said a statement from a spokesman with the ministry of commerce. “Unfortunately, the EU has ignored China's goodwill and sincerity and still insisted on taking restrictive measures and building new protectionist barriers.”