China's Ministry of Finance announced on Sunday that it will restrict government purchases of medical equipment from the European Union exceeding 45 million yuan, or $6.3 million, in response to Brussels' restrictive measures.
Relations between Beijing and Brussels have been strained, after the European Union imposed tariffs on electric vehicles built in China and China imposed taxes on alcohol imports from the EU.
Last month, the European Union announced that it would ban Chinese companies from participating in EU public tenders for medical equipment worth 60 billion euros or more per year, after concluding that European companies did not have equal access to the Chinese market.
This measure was taken by the European Commission in line with the EU International Procurement Mechanism, which entered into force in 2022 and aims to ensure mutual access to markets.
China's countermeasures were expected after the Ministry of Commerce signaled "necessary measures" against the EU's decision late last month.
"Unfortunately, despite China's goodwill and sincerity, the EU has insisted on following its own path, taking restrictive measures and erecting new protectionist barriers," the Ministry of Commerce said in a statement on Sunday.
"Therefore, China has no choice but to take reciprocal restrictive measures," she added.
The Ministry of Finance also said that China will limit imports of medical equipment from other countries that contain components manufactured in the EU to more than 50 percent of the contract value.
The measures come into effect today.
The Ministry of Commerce clarified that products of European companies operating within China will not be affected.
On Friday, China also announced tariffs of up to 34.9 percent for five years on alcohol imported from the European Union - much of it cognac from France - after concluding an investigation believed to be retaliation for EU tariffs on electric cars.
However, major cognac producers such as Pernod Ricard, LVMH and Remy Cointreau were exempted from the tariffs, provided they sell at a minimum price, which China has not made public. /REL
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