China just put new trade limits on medical devices coming from the European Union, turning up the heat in a trade dispute that's been growing over the past few weeks.
Starting Sunday, July 7, Chinese government agencies are barred from buying EU-made medical equipment worth more than 45 million yuan ($6.3 million) unless the manufacturer has local operations.
According to CNBC, the move follows the EU's recent decision to block Chinese companies from bidding on public medical device contracts worth over 60 billion euros ($70 billion) annually.
The European Commission justified its decision by saying Chinese companies had unfair advantages, while European firms lacked equal access to China's market.
This is the first time the EU has used its International Procurement Instrument, which was introduced in 2022 to ensure fair and equal access to public contracts between trading partners.
China's Ministry of Finance responded with its own restrictions.
In addition to banning some EU medical devices, China says it won't allow foreign companies to win contracts if over half of the parts come from the EU.
But there's an exception—companies in China that are backed by EU funding won't be affected by the new rules.
China has issued a notice restricting the import of medical devices from the European Union, requiring Chinese buyers to exclude EU enterprises from purchasing medical devices with a budget of over 45 million yuan.
— DaiWW (@BeijingDai) July 6, 2025
Very good. In the past few years, Europeans believed that they… pic.twitter.com/1LEiIlgHkr
China Imposes New Limits on EU Medical Device Imports
China's Ministry of Commerce said the response was necessary after "repeated efforts" to resolve the dispute were ignored.
"Despite China's goodwill and sincerity, the EU has persisted in taking restrictive measures and building new protectionist barriers," the ministry said. "As a result, China has no choice but to adopt reciprocal countermeasures."
The EU's office in Beijing has not yet commented on the situation.
These latest restrictions come just days after China also slapped up to 34.9% duties on EU brandy imports, mostly affecting French cognac makers, SCMP said.
Some major producers, including Pernod Ricard, LVMH, and Remy Cointreau, were spared from the new tax as long as they meet undisclosed minimum pricing requirements.
The rising tensions are part of a broader trade disagreement between the EU and China, which has already affected electric vehicles, spirits, and now medical equipment.
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