Trade Conflict Comes To A Head: China Blocks EU Medical Technology
China is making market access more difficult for EU medical products. The next blow in the trade conflict hits European manufacturers hard - with consequences for markets worth billions.
The trade conflict is coming to a head: China is specifically blocking European medical technology in direct response to new restrictions from Brussels. The fronts between the economic areas are increasingly hardening. Companies are facing strategic challenges, while the supply situation for patients could also worsen. Beijing's latest move marks a new level of escalation in the global competition for market share and political influence.
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China excludes EU companies from public tenders
China announced new restrictions on the import of European medical devices at the weekend. This measure is a direct response to the European Union's recent trade restrictions on Chinese products. The move exacerbates tensions in the trade conflict between the two economies and raises questions about the future of global supply chains.
Beijing's decision is aimed at government tenders for medical devices such as X-ray machines, pacemakers and other high-tech products. European manufacturers, who were previously strongly represented in these markets, now find themselves facing closed doors. According to official information from Beijing, this is a "reciprocal measure" in response to the EU policy of excluding Chinese companies from public tenders in Europe. China is invoking the principle of reciprocity. The EU had previously excluded Chinese companies such as Mindray and United Imaging from tenders as they receive state subsidies.
EU and China in power struggle over MedTech market
The trade dispute has its origins in the growing mistrust between Brussels and Beijing. The EU accuses China of distorting the global market through subsidies and overcapacity. Brussels believes that its competitive position is under threat, particularly in the field of medical technology, where European companies such as Siemens Healthineers and Philips play a leading role. China, in turn, sees the European measures as protectionist and discriminatory. The new restrictions from Beijing affect a market that is worth billions for European companies. In 2024, the Chinese medical technology market accounted for around 20 percent of global sales, with strong growth due to the modernization of the healthcare system.
The consequences of this decision extend far beyond medical technology. European companies are faced with the difficult choice of relocating their production to China or losing market share. At the same time, Beijing is stepping up its efforts to strengthen its domestic industry. Chinese manufacturers such as Mindray have gained considerable quality and market share in recent years. The restrictions are now giving them an additional boost as state hospitals and clinics are forced to buy locally.
European suppliers lose access to a market worth billions
Experts see the escalation as a sign of the increasing fragmentation of the global economy. While the EU is trying to reduce its dependence on Chinese supply chains, China is focusing on self-sufficiency. This is leading to a reorganization of trade flows, which is causing costs for both Europe and China. Consumers are burdened by higher prices and less choice, while companies are forced to invest in new markets or production sites.
In Europe, the Chinese measures are causing concern. Oliver Bisazza, Chief Executive of MedTech Europe, an association representing companies such as Philips, Bayer AG and Siemens Healthineers, called on both sides to find a solution. "Measures of this kind carry the risk of deepening trade tensions and ultimately denying patients timely access to essential medical technologies," he said. Negotiations between Brussels and Beijing are ongoing, but no concrete progress has been made. The conflict threatens to spill over into sectors such as automotive manufacturing or renewable energies, where both sides have strong interests.
This further aggravates the tensions between China and Europe. At the end of July, both parties will meet in Beijing for the Sino-EU summit. European companies are hoping for clarification, but the prospects are uncertain. China is using its market size to exert pressure, while the EU is sticking to its strategy of economic independence. A quick end to the dispute is not in sight and both sides must weigh up how far they want to go without jeopardizing their own interests.