World trade: China takes action against the EU

China is restricting imports of medical technology from the European Union. As the Ministry of Finance in Beijing announced on Sunday, this affects imports valued at more than 45 million yuan (5.3 million euros). Furthermore, the People's Republic is restricting imports of medical technology from other countries if more than 50 percent of the contract value consists of components manufactured in the EU. Products from European companies that produce in China are not affected by the measure, it added. The measures will take effect on Sunday.

"Regrettably, despite China's goodwill and sincerity, the EU has insisted on pursuing its own path, imposing restrictive measures and erecting new protectionist barriers," the Chinese Ministry of Commerce said in a separate statement on Sunday. "Therefore, China has no choice but to take reciprocal restrictive measures." A statement from the EU delegation in Beijing was not immediately available.

The measure is the result of an investigation by the EU Commission into public tenders for medical technology in China. According to previous statements, the competition watchdogs intend to examine whether European suppliers are granted fair access to these tenders. As a result of the investigation, Chinese companies could face restrictions on their participation in EU tenders. The EU has long complained about restrictions on market access in China in numerous areas. Beijing criticized the European approach.

The import restriction on medical technology from the EU is a further step in the escalating trade tensions between Beijing and Brussels. Just last Friday, China announced tariffs of up to 34.9 percent on brandy from the EU, widely seen as a response to the European tariffs on Chinese electric cars. The heads of state and government of the world's second and third largest economies are scheduled to meet for a summit in China in July.