First International Procurement Case in China
The findings of the investigation concluded that China unfairly treated EU medical devices and suppliers in its public procurement.
. The Commission can impose measures to restrict access to companies from non-EU countries in EU public tenders if it finds problems in non-EU country procurement. The Commission can impose restrictions on companies from non-EU countries if it finds that there are problems with non-EU country public procurement. The ‘Made in China 2025 Strategy’ and the Made in China 2025 Technology Roadmap for Key Years’ specify increasing targets for the proportion of domestically produced high end medical devices procured in hospitals. The objective of replacing imported medical devices with domestic production is embedded in the ’14th Five-year Plan for the Medical Equipment Industry Development’ and other policy and legal documents.
What comes next? The IPI measures could be either a score adjustment for tenders submitted to the EU by Chinese economic operators, or an exclusion from public tenders of Chinese economic operators. Once imposed, IPI measures may remain in force for five years, with a possibility of a five-year extension (Article 6 of the IPI Regulation).
The Commission will have to consider whether it is in the EU interest to adopt any measures. Its proposal will be subject to an examination procedure. The Member States can vote on it, but a qualified majority is required to block the proposal. This post will not cover the interesting topic of how this investigation fits in with the broader geopolitical discussions between China and EU.
Report from the Commission pursuant to Article 5(4) of Regulation (EU) 2022/1031 on the investigation under the International Procurement Instrument concerning measures and practices of the People’s Republic of China in the public procurement market for medical devices (“
Report
“), and accompanying Staff Working Document, Factual findings of the IPI investigation on the procurement market for medical devices in the People’s Republic of China (“
SWD
“), available here
.
SWD, paras. 75-76.