HONG KONG, July 6 — China's Finance Ministry has announced that it is is restricting government purchases of medical devices from the European Union (EU) that exceed 45 million yuan (RM26.51 million) in value, in retaliation to Brussels' own curbs last month.
Tensions between Beijing and Brussels have been escalating, with the EU imposing tariffs on Chinese-built electric vehicles and Beijing imposing duties on imported brandy from the bloc.
Last month, the EU announced that it would bar Chinese companies from participating in EU public tenders for medical devices worth €60 billion (RM298.3 billion) or more per year, following a conclusion that EU firms were not given fair access in China.
The measure announced by the European Commission was the first under the EU's International Procurement Instrument, which entered into force in 2022 and is designed to ensure reciprocal market access.
China's countermeasures were expected after its commerce ministry flagged "necessary steps" against the EU move late last month.
"Regrettably, despite China's goodwill and sincerity, the EU has insisted on going its own way, taking restrictive measures and building new protectionist barriers
"Therefore, China has no choice but to adopt reciprocal restrictive measures," the Commerce Ministry said in a separate statement today.
The EU delegation office in Beijing did not immediately respond to a request for comment.
China will also restrict imports of medical devices from other countries that contain EU-made components worth more than 50 per cent of the contract value. The measures take effect on Sunday.
The Commerce Ministry said products from European companies in China were not affected.
The world's second- and third-largest economies are scheduled to hold a leaders' summit in China later this month.
On Friday, China also announced duties of up to 34.9 per cent for five years on brandy originating in the European Union, primarily cognac from France, after concluding an investigation largely believed to be a response to Europe's EV tariffs.
However, major cognac producers Pernod Ricard, LVMH, and Remy Cointreau were spared from the levies, provided they sell at a minimum price, which China has not disclosed.
— Reuters
