Europe too, Unhappy with China’s Device Procurement Practices

Over the last 5 years, relations between the US and China have been deteriorating, while EU-China relations have held relatively steady. However, recently China-EU relationships have begun to deteriorate too. One example of this is an EU investigation to be started soon on China device procurement. European device companies are now strongly claiming that China’s device procurement policies favor domestic Chinese device makers. Europe feels that China’s new programs including volume-based procurement, Diagnostic-Related Groups (DRG) systems, and limited reimbursement all favor domestic device manufacturers. As a result, Europe may limit opportunities for Chinese companies to take part in EU tenders. A senior Siemens Healthineers executive stated that stalled China device procurement of foreign devices was “black and white.”

In late 2023, China and the EU met to discuss a more balanced trade relationship. However, China’s “Made in China” program looks to have 85% of all medical device products made by Chinese companies by 2025. Europe and the US are now facing a similar device procurement problem in China, and how this dispute will be dealt with going forward, is anyone’s guess.