Brussels has launched an investigation into China as part of the government procurement instrument

The European Commission launched this Wednesday the first investigation under the International Public Procurement Instrument (ICPI), which targets China’s medical device practices, which it says “unfairly discriminate against European companies and products.”

According to the statement, elements collected by the European Commission indicate that the Chinese market for purchasing medical devices is gradually becoming more closed to European and foreign companies, as well as to products manufactured in the European Union (EU).

This is due to measures introduced by China that create unfair differences between local and foreign companies, and between local and imported medical devices.

The community leader justifies the use of ICPI on the grounds that Beijing has never responded satisfactorily to the concerns raised by the EU.

If, following investigation and consultation, Brussels concludes that discriminatory measures have taken place and that China is not offering a satisfactory solution, it may take measures under ICPI rules.

Such measures could be an adjustment to the scores of tenderers from the relevant third country (lowering their scores in the selection process, reducing their chances of winning the tender) or their complete exclusion from the relevant EU tender.

The investigation period is nine months, which can be extended for another five, and can also be terminated if China takes corrective measures or makes satisfactory commitments.

The EU public procurement market is one of the largest and most accessible in the world, the Commission said, adding that Chinese exports of medical equipment grew by more than 100% between 2013 and 2023.

The EU’s International Public Procurement Instrument (ICPI), created in August 2022, aims to promote reciprocity in access to international public procurement markets.

The instrument is designed to rebalance the power of EU companies bidding in third countries and promote open and fair access to public procurement markets around the world.