- Intro
News – First IPI investigation carried out by the EC
On 24 April 2024, the European Commission (‘EC’) initiated on its own initiative an investigation into measures and practices in the public procurement market of China for medical devices. The EC has concluded that these measures and practices resulted in an impairment of access of EU economic operators, goods and services (‘alleged measures and practices’). The EC found that 87% of public procurement tenders contained explicit or implicit restrictions affecting the procurement of imported medical devices. As a result, imported medical devices and foreign economic operators were placed at a disadvantage.
Imposing IPI measures
In this respect, on 19 June 2025, the EU adopted a retaliatory measure under an IPI framework, a measure excluding Chinese companies from participating in EU government public tenders of medical devices exceeding EUR 5 million. According to the EU, this measure is a proportionate response to the trade barriers and unfair treatment imposed by China on EU businesses. In addition to the principle of proportionality, the availability of alternative sources of supply is also a factor in determining IPI measures. Exceptions will be made when no alternative sources of supply exist. The measure entered into force on 30 June 2025, ten days after the decision date.
The Government of China has been invited to submit its views and provide relevant information and engage in consultations with the EC with the aim to eliminate or remedy these alleged measures and practices. A consultation took place between the two parties, and possible solutions were explored. The GOC has repeatedly expressed the willingness to go into dialogue to further address this and stresses that it imports a significant number of medical devices and that foreign invested companies can participate without being subject to discrimination with respect to domestic products.
2. IPI regulation
The EC’s initiative is based on Regulation (EU) 2022/1031. This regulation lays down rules for improving the access of EU businesses to public procurement markets in non-EU countries where international agreements do not already apply. It enables the EC to investigate alleged measures and practices of these third countries against Union economic operators.
The application of the IPI measures is defined by the main Common Procurement Vocabulary (“CPV”) code, as set forth in Regulation (EC) 2195/2002. The scope of the IPI measure is defined by the main Common Procurement Vocabulary (CPV) codes, covering all medical devices listed under CPV codes 33100000-1 to 33199000-1. Contracting authorities in the EU will need to verify whether the main CPV code of a tender falls within this range before allowing participation by Chinese bidders
IPI measures shall expire five years from its entry into force, with the possibility to extend for another five years. IPI measures can be suspended or withdrawn. Should the EC determine that the GOC has taken sufficient actions to remedy the impairment, the IPI measures may be suspended or withdrawn.
3. China’s response
On 6 July 2025, China responded to the IPI-measure by taking retaliatory procurement measures for government purchases of medical devices from the EU exceeding 45 million yuan in value. Additionally, China will restrict import of medical devices from third countries whose products contain EU-made components representing more than 50% of the contract value. These restrictions do not apply when only EU-imported medical devices meet the procurement requirements. The measures taken by China are immediately effective.
