Public Procurement: Chinese firms restricted on medical devices market

Based on Article 5(1) of Regulation (EU) 2022/1031 of the European Parliament and of the Council of 23 June 2022, the European Commission can, on its own initiative or based on a duly substantiated complaint from an interested party, open an investigation into an alleged measure or practice of a third country. This investigation is initiated by publishing a notice in the Official Journal of the European Union. At this stage, the notice of initiation shall include the Commission’s preliminary assessment of the third-country measure or practice and invite interested parties to provide relevant information.

This investigative mechanism was used for the first time on 24 April 2024, in response to China’s public procurement practices for medical devices. Following the investigation—conducted under the EU's International Procurement Instrument (IPI)—a report dated 14 January 2025 revealed that China had unfairly restricted access for European companies to its public procurement market in this sector.

Consequently, on 2 June 2025, the European Union decided to restrict imports of Chinese medical devices in response to China’s unfair and discriminatory treatment of European companies in its public procurement market. This decision—which has not yet been published in the Official Journal of the European Union—plans to ban Chinese companies from bidding on EU public contracts for medical devices valued over €5 million for a period of five years.

Practitioner’s Perspective:

This measure will have immediate consequences for Chinese companies, as some may lose market share. However, for certain devices without equivalents, buyers might attempt to procure contracts below the prohibition threshold. Furthermore, this decision is likely to be the first of a series, potentially affecting other sectors and countries in the near future. All economic operators from non-EU countries that regularly contract with EU public authorities should remain vigilant.