CCCEU expresses deep disappointment with EC's initial IPI investigation into China's public procurement of medical devices, calling for prioritising dialogue and consultation

April 24, 2024, Brussels

On April 24, 2024, the CCCEU took note of the publication in the Official Journal of the EU regarding the European Commission's initiation of an investigation into China's public procurement of medical devices under the International Procurement Instrument (IPI). The chamber expressed its deep disappointment and called on the European side to be prudent in the use of this unilateral tool, emphasising the importance of prioritising dialogue and consultation mechanisms.

The chamber believes the investigation should be based on comprehensive and objective facts. There might be a lack of understanding on the European side regarding China's recent policies aimed at ensuring fair involvement of both domestic and foreign enterprises in government procurement, as well as actively promoting foreign investment in the medical sector. (Please find more in a CCCEU note.)

The IPI was reportedly crafted with the intention of targeting China from the outset. According to a 2023 survey conducted by the CCCEU among 180 Chinese companies and organisations in Europe, 21% of the respondents expressed concern about the negative impact of the IPI on their business operations.

The CCCEU also observes ongoing communication between China and the EU regarding government procurement, notably regarding China's accession to the World Trade Organisation's Government Procurement Agreement (GPA) and revisions to China's Government Procurement Law. Dialogue channels remain accessible, with both China and Europe possessing numerous mechanisms to address European enterprises' demands to engage in public procurement in China.

The IPI contains mechanisms for dialogue and consultation. The chamber urges the European side to prioritise dialogue and consultation as the preferred approach in the realm of procurement of medical devices rather than resorting to IPI measures that could impact the business environment of Chinese enterprises in Europe.

Furthermore, the chamber underscores reports from some Chinese enterprises revealing limitations on exporting specific high-end European medical devices to China due to factors such as dual-use concerns. These enterprises seek the European side to ease such restrictions and facilitate economic and trade interactions. Chinese enterprises are hopeful that the European side will ease restrictions in this domain and actively foster pertinent economic and trade exchanges.