China has announced a ban on European medical device companies from participating in government procurement, effective immediately.

The decision is a direct response to the European Union’s restrictions on Chinese medical products.

The ban applies to contracts exceeding CNY45m ($6.28m), as per the finance ministry’s notice on Sunday. However, European firms with manufacturing operations in China remain unaffected by this restriction.

The development follows China’s imposition of anti-dumping duties on European brandy, including French cognac, although major producers benefit from certain exemptions.

The trade tensions between China and the EU extend across various sectors, with recent disputes involving electric vehicles and investigations into European pork and dairy products.

Last month, the EU barred Chinese companies from government contracts over €5m to counteract perceived discriminatory practices against EU firms in China. The EU cited “significant and recurring legal and administrative barriers” in China’s procurement market.

In response, China stated it had “no choice but to implement countermeasures,” expressing a willingness to resolve differences through dialogue.

The Ministry of Commerce said: “China has repeatedly expressed through bilateral dialogues that it is willing to properly handle differences with the EU through dialogue and consultation and bilateral government procurement arrangements.”

The statement further noted: “Unfortunately, the EU has ignored China’s goodwill and sincerity and still insisted on taking restrictive measures and building new protectionist barriers.”