Source: AFP
The European Union has launched an investigation into Chinese public procurement of medical technology, the EU’s official newspaper said on Wednesday, in a move that risks further raising tensions with Beijing.
Brussels fears that China is favoring local suppliers and, in the magazine, the EU provided the different ways this could happen, including a “Buy China” policy.
The EU also has concerns that China may have restrictions on imports as well as impose conditions “that lead to abnormally low bids that cannot be supported by profit-oriented companies,” the statement said.
“The…restrictive measures and practices put economic operators, goods and services of the (European) Union at a significant and systemic disadvantage as they systematically favor the supply of domestic products at the expense of imported ones,” he added.
It is the first inquiry under the EU’s International Procurement Instrument which seeks to promote reciprocity in access to international public procurement markets.
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If the investigation finds wrongdoing, the EU can restrict Chinese companies’ access to the public procurement market in the 27-nation bloc.
The newspaper said the investigation will be completed within nine months of its launch, although the European Commission can extend it for an additional five months.
The statement said Beijing is “requested to submit its views and provide relevant information” and China may also “initiate consultations with the Commission to eliminate or correct the alleged measures and practices.”
China’s medical technology market is the second largest after the United States, worth about 135 billion euros ($145 billion) in 2022, according to a 2023 report by China-focused think tank MERICS.
Detector designs
Brussels has launched a wave of investigations targeting China over green technology subsidies in recent months.
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The EU drew Beijing’s ire earlier in April after it announced an investigation into Chinese wind turbine suppliers.
Other investigations have focused on Chinese subsidies for solar panels, electric cars and trains, as Brussels tries to move away from an over-reliance on cheaper Chinese technology.
EU officials have repeatedly said they want to “risk” their economic ties with China after Moscow’s attack on Ukraine exposed Europe’s energy dependence on Russia.
The EU has also adopted laws that often target China. On Tuesday, the European Parliament approved a ban on products made with forced labor, which advocates hope will be used to block goods from China.
And Wednesday’s investigation comes a day after German authorities said they had arrested an aide to Maximilian Krah, a member of the EU parliament for the AfD and the party’s leading candidate in June’s European elections, on suspicion of spying for China.
Source: AFP