China's response after the EU has removed it from auctions of 60 billion euros: “We have no other option”
XI Jinpingfoto: Iichiro Ohara / AP / Profimedia Images
The Chinese Ministry of Finance announced on Sunday that it is restricting government acquisitions of medical devices in the European Union with a value of more than 45 million Yuan ($ 6.3 million), in response to the measures taken by Brussels last month, Reuters reports.
The announcement comes under the conditions of increasing tensions between Beijing and Brussels, EU imposing customs tariffs on electric vehicles made in China, and Beijing applying customs duties on the cognac from the community block.
The European Union announced last month that it prohibits Chinese companies from participating in EU public auctions for medical devices worth 60 billion euros or more a year, after concluding that EU companies do not have fair access to China.
The measure announced by the European Commission was the first in the International EU public procurement instrument, which entered into force in 2022 and aims to ensure mutual access to the market.
“We have no other option”
China's countermeasures were expected after the Chinese Ministry of Commerce reported “necessary measures” against the EU decision at the end of last month.
“Unfortunately, despite China's goodwill and sincerity, the EU insisted on going on its way, taking restrictive measures and building new protectionist barriers,” the Ministry of Commerce said in a statement on Sunday.
“Therefore, China has no other option than adopting mutual restrictive measures,” Beijing said.
China will also restrict imports of medical devices from other countries containing components made in the EU worth over 50% of the contract value, the Ministry of Finance said. The measures come into effect on Sunday.
The Ministry of Commerce said that the products of European companies in China are not affected.
On Friday, China also announced taxes of up to 34.9% over a period of five years for the cognac from the European Union, largely cognac in France, after the conclusion of an investigation considered a reaction to European fares for electric vehicles.
Important manufacturers of cognac Pernod Ricard, LVMH and Remy Cintreau were exempt from taxes, provided they sell at a minimum price, which China did not reveal.
