“China” Responds! Limiting Procurement of Medical Devices from Europe - Squeezing French Brands After EU Bans Goods

China announces limit on medical equipment purchases from Europe exceeding 45 million yuan, in response to EU ban on Chinese companies participating in government procurement, and imposes import tariffs of up to 34.9% on European brandy

On July 7, 2568 at 06.21:XNUMX p.m., CNBC news agency reported that China's finance ministry said on Sunday that the Chinese government will limit purchases of medical equipment from the European Union (EU) worth more than 45 million yuan ($6.3 million). In response to EU restrictions last month

Tensions between China and the European Union have escalated after the EU imposed countervailing tariffs on Chinese-made electric cars and China announced import duties on European brandy.

Last month, the European Union announced a ban on Chinese companies from participating in European government tenders for medical devices worth more than €60,000 billion ($70,000 billion) a year after the EU concluded that European companies were not given fair market access in China.

The measure marks the first time the EU has used the International Procurement Instrument, which came into effect in 2565 to promote a level playing field for markets.

China's countermeasures come after China's commerce ministry signaled late last month that it would take necessary measures to counter the EU.

“Unfortunately, despite China’s sincerity and good intentions, the EU insists on taking restrictive measures and building new trade barriers… Therefore, China has no choice but to take retaliatory restrictive measures,” China’s commerce ministry said in a separate statement on Sunday.

China's finance ministry also announced that it will restrict imports of medical devices from other countries whose components originate from the European Union, accounting for more than 50% of the contract value, with the measure effective immediately on Sunday.

However, China's commerce ministry said European companies' products manufactured in China would not be affected by the measure.

China and the European Union, the world's second and third largest economies, are scheduled to hold a joint leaders' summit in China in late July.

China also announced on Friday that it will impose import tariffs of up to 34.9% on brandy from the European Union for five years, following an investigation that many see as retaliation for European tariffs on electric vehicles.

However, major cognac producers, including Pernod Ricard, LVMH and Remy Cointreau, will be exempt from the tax if they sell at a minimum price set by China, although the price details have not been disclosed.

refer : cnbc.com

Read news related to All China economic situations can be found here.