The background
On 24 April 2024, the European Commission launched its first investigation under the IPI (International Public Procurement Instrument) regarding the discrimination practices against foreign companies, particularly European companies, in Chinese public procurement markets for medical devices. In its report of 14 January 2025, the Commission demanded the Chinese government to remove all barriers and obstacles to access to the Chinese public market.
The EU had refused to conclude a bilateral agreement with China to establish a legal framework for invitations to tender. Successive discussions with the Chinese authorities proved fruitless.
Measures taken by the Commission
On 20 June 2025, the European Commission decided to exclude Chinese companies from purchases by European Union (EU) public authorities of medical devices worth more than €5 million. It also imposed a 50% limit on the proportion of Chinese components in successful bids.
The Commission points out that it is entitled to adopt these measures, which totally restrict access to the EU public procurement market for Chinese companies, since they comply with the EU’s international obligations, particularly under the WTO, and since no public procurement agreement has been concluded with China. It states that these measures are proportionate to the barriers imposed by the Chinese authorities.
The Commission emphasizes that the aim of this measure is to encourage China to stop discriminating against EU companies and to treat EU companies fairly on the Chinese market.
The Commission has provided for certain derogations from these measures when there are no other suppliers of these medical products. In addition, the €5 million limit will spare small hospitals with very modest purchases.
Future developments
The measures announced will come into force in ten days’ time.
The Commission affirms that it remains open to dialogue and emphasizes its wish to intensify contacts with the Chinese authorities in order to reach an agreement to combat this discrimination. It points out that the aim of the IPI instrument is to encourage fairer access to public contracts. In fact, it is not of a penal or repressive nature, because as the Commission explains, measures taken under the IPI can be suspended or withdrawn.
