BEIJING – China escalated its trade dispute with the European Union on Sunday, barring European medical device suppliers from government contracts in a direct retaliation against similar EU restrictions on Chinese firms.
Effective immediately, the ban applies to state procurements exceeding 45 million yuan ($6.28 million), China's Finance Ministry announced. However, an exception was made for European companies that manufacture their products within China.
This move is the latest in a tit-for-tat conflict that has intensified in recent weeks. It follows China's imposition of anti-dumping tariffs on European brandy on Friday and ongoing investigations into EU pork and dairy products.
The feud began after the EU announced in June it would exclude Chinese companies from government tenders worth more than 5 million euros ($5.89 million). The EU stated the measure was a response to "significant and recurring" barriers that China places on foreign firms in its own procurement market.
A spokesperson for China’s Commerce Ministry said the EU had "ignored China's goodwill," leaving Beijing with "no choice but to implement countermeasures."
