Trade tension: EU with new investigation against China, Beijing accused Brussels of protectionism

The European Union (EU) has launched an investigation into Chinese public procurement of medical devices, suspecting “discriminatory” practices against its products, amid growing trade tensions with Beijing, AFP reported.

According to the notice of investigation published in the Official Journal of the EU (OJ), Brussels suspects China of favoring local suppliers in this market, in particular through the “Buy from China” policy.

If these discriminatory measures are not stopped, the procedure will allow the EU to sanction Chinese companies in European tenders.

According to the published notice, Brussels accuses the Asian giant of “privileging the purchase of local medical devices and services”, “restricting the purchase of imported goods” and imposing in its centralized procedures for the purchase of medical devices “conditions leading to abnormally low (price) offers that cannot be supported by profit-oriented enterprises’.

According to the European Commission, these “restrictive import measures and practices put companies in the European Union at a significant and systemic disadvantage.”

Now the investigation will have to establish the facts within nine months. The procedure involves consultations with the Chinese authorities to obtain their consent to open their market.

China accused the EU of protectionism

Beijing warned that the EU was causing “damage” to its image and accused it of protectionism. The warning came in response to an investigation into Chinese procurement of medical devices launched by the bloc, AFP reported.

“The EU often uses its trade tools and trade facilitation measures, but they only send out protectionist signals, target Chinese enterprises and harm the image of the EU,” said Foreign Ministry spokesman Wang Wenbin.

“The EU has always presented itself as the most open market in the world, but the outside world sees only its gradual drift towards protectionism. We call on the European side to stick to its promise of market openness and fair competition, abide by the rules of the World Trade Organization (WTO), and stop using any occasion to unreasonably suppress and restrict Chinese businesses,” Wang added.

If the investigation finds unfair behaviour, the EU could restrict Chinese companies’ access to the public procurement market in the 27-nation bloc.