China Retaliates with Sanctions on EU Medical Goods - China retaliates with sanctions on European medical goods
In a move that escalates the ongoing trade dispute between the European Union (EU) and China, Beijing has imposed counter-sanctions on EU medical products. The Chinese Ministry of Commerce announced that these measures were taken to protect the "legitimate rights and interests of Chinese companies" and maintain fair competition [1].
The EU's actions, which include limiting Chinese companies' access to public procurement contracts, were in response to China's "Buy China" policy that disadvantages EU firms in the Chinese market. This policy is part of broader anti-dumping tariffs and market barriers aimed at countering what Brussels perceives as unfair competitive advantages gained by Chinese products [2].
The counter-sanctions imposed by China affect a wide range of healthcare products, including surgical masks, X-ray machines, sterilizers, wheelchairs, and bandaging materials like adhesive bandages [3]. However, it's worth noting that products from EU companies produced in China remain unaffected by the Chinese counter-sanctions [4].
The EU has responded to the escalating conflict with several measures. On June 20, the EU Commission decided to exclude Chinese providers from public tenders for medical products worth over five million euros [5]. The Commission also introduced the International Procurement Instrument (IPI), which allows the EU to restrict Chinese participation in EU public procurement, especially targeting medical devices from China [3]. Furthermore, the EU has employed anti-dumping duties on Chinese electric vehicles and other goods, such as construction machinery, to protect European industries [2].
Recently, the EU-China High-Level Economic and Trade Dialogue was called off ahead of the July 2025 summit due to lack of progress on key trade disputes, signaling increasing friction and a reluctance to engage amid unresolved issues [5].
Both China and the EU maintain a significant and strategic economic relationship, with a shared interest in upholding a rules-based international order. However, recent actions have deepened mistrust and shifted perceptions of China in Europe from a cooperative partner to a strategic rival [2].
Despite offers of dialogue, the EU acted unilaterally according to Beijing, and the Chinese government accused the EU of hypocrisy in relation to the new restrictions [6]. The EU Commission used a sanctions instrument introduced in 2022 for the first time to respond to discriminatory procurement practices by China [7].
As the trade tensions continue, both sides will need to navigate these challenges carefully to maintain their economic ties while addressing their concerns.
- Given the escalating trade dispute, the European Union (EU) is considering implementing a community policy that includes vocational training programs to equip EU businesses, particularly those in the healthcare sector, with skills to improve their competitiveness against Chinese companies.
- To counter the financial impact of the ongoing trade dispute, EU firms in the business sector could explore opportunities in vocational training and education, providing them with an alternative means of revenue while maintaining their competitive edge in the global market.
