China’s Retaliation to EU Curbs Clouds Ties Before Summit

Key Points

• It seems likely that China has retaliated against the EU's restrictions on Chinese medical device makers by imposing curbs on EU medical devices, adding uncertainty to their ties before a summit.

• The evidence leans toward this retaliation involving barring EU companies from Chinese government procurement for medical devices over 45 million yuan, with exceptions for products made in China.

• There is controversy, as both sides have engaged in tit-for-tat measures, with the EU citing discrimination by China and China calling for a fair environment for its companies.

Background

China and the EU have been engaged in a trade dispute, with the EU imposing restrictions on Chinese medical device makers and tariffs on Chinese electric vehicles (EVs), alleging state subsidies and lack of fair market access. This has led to retaliatory actions from China, complicating their relationship ahead of a summit.

Details of Retaliation

The EU announced in June 2025 that it would exclude Chinese companies from government purchases of medical devices exceeding 5 million euros ($5.89 million), aiming to incentivize China to cease discrimination against EU firms. In response, China, on July 6, 2025, barred European medical device companies from selling to its government for procurements over 45 million yuan ($6.28 million), effective immediately. However, this does not apply to EU companies manufacturing in China, benefiting firms like Siemens Healthineers AG and Royal Philips NV.

Broader Context

This retaliation is part of ongoing trade tensions, with China also initiating an anti-dumping investigation into European liquors and imposing 5-year duties on European brandy, with exemptions for major cognac makers. The EU has complained about a lack of level playing field, while China has engaged in EV price negotiations with the EU, reportedly nearing completion. The summit, originally planned for two days, has been shortened to one day, indicating potential strain.

Implications

The timing of China's actions, just before the summit, adds uncertainty, with discussions likely to cover EU tariffs on Chinese EVs and Beijing’s support for Moscow since the Ukraine invasion. Experts describe this as a "tit-for-tat move," with both sides adopting defensive postures, ready for any summit outcome.

Supporting URLs:

• Bloomberg: China's Retaliation to EU Curbs Clouds Ties Before Summit

• NDTV Profit: China's Retaliation to EU Curbs Complicates Ties Before Summit

• AP News: China retaliates against EU with a ban on European medical devices

---

Comprehensive Analysis of China’s Retaliation to EU Curbs and Its Impact on Bilateral Ties Before the Summit

This note provides a detailed examination of China’s recent retaliation against the European Union’s (EU) curbs on Chinese medical device makers, announced on July 6, 2025, and its implications for bilateral ties ahead of a scheduled summit. The analysis is informed by recent news reports from reputable sources, ensuring a thorough understanding for professional colleagues.

Event Overview

On July 6, 2025, China responded to the EU’s restrictions on its medical device makers by imposing reciprocal curbs, barring EU-based companies from participating in Chinese government procurement for certain medical devices. This retaliation, effective immediately, adds uncertainty to China-EU relations, particularly as it coincides with an upcoming summit, originally planned for two days but reportedly shortened to one day by China.

EU’s Curbs on Chinese Medical Devices

The EU had announced in June 2025 that it would exclude Chinese companies from government purchases of medical devices exceeding 5 million euros ($5.89 million). This measure was part of a broader strategy to incentivize China to cease what the EU perceives as discrimination against EU firms, citing significant legal and administrative barriers in China’s procurement market. The EU’s action was also linked to complaints about a lack of level playing field and fair market access for European companies in China.

Detail	Information
EU’s Curbs	Excluded Chinese companies from government purchases > 5 million euros ($5.89 million), announced in June 2025
EU’s Reason	To incentivize China to stop discrimination against EU firms, citing barriers in procurement market
Impact	Aimed at pressuring China for fair market access and addressing trade imbalances

China’s Retaliatory Measures

China’s response, detailed in a notice from its Ministry of Finance on July 6, 2025, bars European medical device companies from selling to the Chinese government for procurements exceeding 45 million yuan ($6.28 million). However, this restriction does not apply to products made in China, benefiting EU companies with manufacturing operations in China, such as Siemens Healthineers AG and Royal Philips NV. This exception was clarified in a statement from China’s Ministry of Commerce.

Additionally, China has taken further retaliatory actions, including:

• Beginning an anti-dumping investigation into some European liquors.

• Imposing 5-year duties on European brandy, with exemptions for major cognac makers committing to minimum price levels.

These measures are seen as a “tit-for-tat move” and a “reciprocal response” to encourage a fair and reasonable environment for Chinese companies, according to experts like Henry Gao from Singapore Management University’s Yong Pung How School of Law and Zhou Mi from the Chinese Academy for International Trade.

Detail	Information
China’s Retaliation	Barred EU companies from government procurement > 45 million yuan ($6.28 million), effective July 6, 2025
Exception	Does not apply to products made in China, benefiting firms like Siemens Healthineers and Philips
Additional Actions	Anti-dumping investigation into European liquors, 5-year duties on European brandy with exemptions
Expert Opinion	Described as “tit-for-tat move” and “reciprocal response” for fair environment

The financial impact was evident in early market reactions, with Siemens Healthineers shares falling as much as 2.4% and Philips declining as much as 1.5% on July 7, 2025. However, analysts from Jefferies, including Julien Dormois, noted that firms are “minimally affected” due to their strong local presence in China.

Broader Trade Context

This retaliation is part of ongoing trade tensions between China and the EU. The EU has also imposed steep tariffs on Chinese electric vehicle (EV) imports, alleging state subsidies, which led to China initiating talks to set minimum prices for Chinese-made EVs. Reports indicate that these EV talks “entered final stages,” with the technical part “basically completed,” as noted in a Friday post by Yuyuantantian on China Central Television.

Other related disputes include:

• EU tariffs on Chinese EVs, prompting China to seek negotiations.

• Previous disputes over pork, dairy, and cognac, as evidenced by related news articles.

Related Trade Issues	Details
EU Tariffs on Chinese EVs	Imposed last year, alleging state subsidies; China in final stages of price talks
Previous Disputes	Included pork, dairy, and cognac, with ongoing tensions (see related URLs)

Summit Implications

The timing of China’s retaliation, just before the EU-China summit, adds significant uncertainty. Bloomberg News reported last week that China intended to shorten the summit from two days to one, which may indicate a less cooperative stance. The summit is expected to discuss EU tariffs on Chinese EVs, Beijing’s support for Moscow since the Ukraine invasion, and broader trade imbalances, including a €304B trade gap and rare earths curbs.

Cui Hongjian, a former Chinese diplomat, noted that China has adopted a defensive posture, ready for any summit outcome. It aims to cooperate if the EU de-escalates but is prepared to respond if tensions rise, reflecting the strained dynamics.

Market and Economic Context

The trade dispute reflects broader geopolitical and economic tensions, with both sides seeking to protect their industries. The EU’s actions are driven by concerns over China’s state subsidies and market access, while China views the EU’s measures as protectionist, justifying reciprocal actions. The involvement of major companies like Siemens and Philips, with significant operations in China, highlights the complexity, as local manufacturing provides a buffer against full retaliation.

Conclusion

In summary, China’s retaliation against the EU’s curbs on Chinese medical devices, announced on July 6, 2025, involves barring EU companies from Chinese government procurement for medical devices over 45 million yuan, with exceptions for products made in China. This is part of a broader pattern of tit-for-tat trade measures, including actions on liquors and EVs, adding uncertainty to bilateral ties ahead of the summit. The EU’s initial curbs and China’s response reflect ongoing tensions over market access and fair trade, with potential implications for summit discussions and future economic relations.

Supporting URLs:

• Bloomberg: China's Retaliation to EU Curbs Clouds Ties Before Summit

• NDTV Profit: China's Retaliation to EU Curbs Complicates Ties Before Summit

• AP News: China retaliates against EU with a ban on European medical devices

标签:   游戏头条 资讯头条 ggamen科技资讯 ggamen科技 ggamen科技资讯头条 科技资讯头条 ggamen游戏财经 新闻网 科技新闻网 科技新闻 ggamen ggamen游戏新闻网 科技新闻 科技新闻网 科技资讯头条 ggamen科技资讯头条 ggamen科技 ggamen科技资讯 资讯头条 游戏头条 ggamen ggamen游戏新闻网 新闻网 ggamen游戏财经 科技资讯头条 ggamen科技资讯头条 ggamen科技 ggamen科技资讯 资讯头条 游戏头条