China bans EU firms from medical device contracts
China has barred European companies from major Chinese government medical device contracts, hitting back against similar EU restrictions imposed on Chinese firms last month.
In a notice on Sunday, the Ministry of Finance said that European Union companies without operations in China were excluded from government medical device contracts valued at more than 45 million yuan (US$6.3 million).
Taking effect on Sunday, the restriction does not apply to EU-funded companies operating in China.
Non-EU companies taking part in such government tenders must not allocate more than half of the total contract value to importing medical devices from the EU, according to the finance ministry.
The Ministry of Commerce said the move was a last resort, after Beijing had 'repeatedly expressed through bilateral dialogues its willingness to resolve the differences through consultation and arrangements on government procurement'.
'Despite China's goodwill and sincerity, the EU has persisted in taking restrictive measures and building new protectionist barriers,' it said.
'As a result, China has no choice but to adopt reciprocal countermeasures.'
'These actions aim to safeguard the legitimate rights and interests of Chinese enterprises and uphold a fair competitive environment,' it added.In June, the EU barred Chinese medical device companies from bidding for public tenders worth more than €5 million (US$5.89 million) for five years.It followed a European Commission investigation, which concluded in January that there was 'clear evidence of China limiting access by EU medical device producers to its government contracts in an unfair and discriminatory way'.
China and the EU are scheduled to hold a summit this month in Beijing, marking the 50th anniversary of diplomatic relations. In preparation for the meeting, both sides have been addressing trade disputes, ranging from electric vehicles (EV) to
cognac.
The 'technical' part of negotiations towards resolving the EV dispute had been finalised, with only the final step remaining, Yuyuan Tantian, a social media account affiliated with state broadcaster CCTV, reported on Friday. It said the deal now hinged on 'political will' from the European side.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Qatar Tribune
a day ago
- Qatar Tribune
Deals made by Trump since pausing his ‘Liberation Day' tariffs remain sparse
Agencies Just over three months ago, President Donald Trump unveiled his most sweeping volley of tariffs yet — holding up large charts from the White House Rose Garden to outline new import taxes that the U.S. would soon slap on goods from nearly every country in the world. But in line with much of Trump's on-again, off-again trade policy playbook, the bulk of those 'Liberation Day' levies in April were postponed just hours after they took effectin a 90-day suspension that arrived in an apparent effort to quell global market panic and facilitate country-by-country negotiations. At that time, the administration set a lofty goal of reaching 90 trade deals in 90 days. Now, with the July 9 deadline looming, the U.S. has only announced pacts with the United Kingdom and Vietnam — as well as a 'framework″ agreement with China in a separate trade dispute. News of these deals often trickled through social media posts from the president and, even when countries on both sides of a negotiation table made more official announcements, many key details — including timing — were sparse. The Trump administration has since hinted that some trading partners might get more time for talks. Over the July 4th holiday weekend, Trump said that the U.S. would start sending letters to certain countries warning that higher tariffs could kick in Aug. 1. Trump took to Truth Social on Monday to share letters he sent to the leaders of Japan and South Korea, declaring that both countries would see 25% tariffs on goods entering the U.S. starting Aug. 1. Even with negotiations ongoing, most countries have still faced a minimum 10% levy on goods entering the U.S. over the past three months, on top of punishing new taxes targeting foreign steel and aluminum as well as auto imports. The 90-day pause pushed back additional steeper rates, which Trump calls 'reciprocal' tariffs, for dozens of nations. Here's what we know about the trade deals announced since April. On July 2, Trump announced a trade deal with Vietnam that he said would allow U.S. goods to enter the country duty-free. Vietnamese exports to the United States, by contrast, would face a 20% levy. That's less than half the 46% 'reciprocal' rate Trump proposed for Vietnamese goods back in April. But in addition to the new 20% tariff rate, Trump said the U.S. would impose a 40% tax on 'transshipping'' — targeting goods from another country that stop in Vietnam on their way to the United States. Washington complains that Chinese goods have been dodging higher U.S. tariffs by transiting through Vietnam. It wasn't immediately clear when these new rates would go into effect or whether they would come on top of any other previously-imposed levies. Like most other countries, Vietnam has faced Trump's 10% baseline tariff for the last three months. On May 8, Trump agreed to cut tariffs on British autos, steel and aluminum, among other trade pledges — while the U.K. promised to reduce levies on U.S. products like olive oil, wine and sports equipment. The deal was announced in grandiose terms by both countries, but some key details remained unknown for weeks. When the deal was announced, for example, the British government notably said that the U.S. agreed to exempt the U.K. from its then-universal 25% duties on foreign steel and aluminum — which would have effectively allowed both metals from the country to come into the U.S. duty-free. But the timing for when those cuts would actually take effect stayed up in the air for almost a month. It wasn't until early June, when Trump hiked his steel and aluminum tariffs to a punishing 50% worldwide, that the U.S. acknowledged it was time to implement the agreement. And even then, U.S. tariffs on British steel and aluminum did not go to zero. The U.K. was the only country spared from Trump's new 50% levies, but still faces 25% import taxes on the metals — and Trump said that rate could also go up on or after Wednesday. The U.K. did not receive a higher 'reciprocal' rate on April 2, but continues to face the 10% baseline its peak, Trump's new tariffs on Chinese goods totaled 145% — and China's countertariffs on American products reached 125%. But on May 12, the countries agreed to their own 90-day truce to roll back those levies to 30% and 10%, respectively. And last month, details began trickling in about a tentative trade agreement. On June 11, following talks in London, Trump announced a 'framework' for a deal. And late last month, the U.S. and China both acknowledged that some sort of agreement had been reached. U.S. Treasury Secretary Scott Bessent said that China had agreed to make it easier for American firms to acquire Chinese magnets and rare earth minerals critical for manufacturing and microchip production. Meanwhile, without explicitly mentioning U.S. access to rare earths, the Chinese Commerce Ministry said that it would 'review and approve eligible export applications for controlled items' and that the U.S. would 'lift a series of restrictive measures it had imposed on China.' More specifics about those measures — and when they would actually go into effect — were not immediately clear. But on Friday, the Ministry of Commerce acknowledged that the U.S. was resuming exports of airplane parts, ethane and other items to China. And when Trump first announced the framework on June 11, the U.S. had said it agreed to stop seeking to revoke the visas of Chinese students on U.S. college campuses.
Qatar Tribune
a day ago
- Qatar Tribune
Pakistan's potential path to becoming an energy transit state
Tribune News Network Doha At the crossroads of strategic ambition and regional complexity lies Pakistan's untapped potential to emerge as a critical energy transit state—linking the hydrocarbon-rich Gulf and Central Asian states with the energy-hungry economies of South and East Asia. In its latest Energy Research Paper, the Al-Attiyah Foundation delves into Pakistan's efforts to harness its geographical advantage, analysing over US$ 35 billion in energy investments from China, Saudi Arabia, the UAE, and Qatar, as well as major transnational projects like the Turkmenistan–Afghanistan–Pakistan–India Pipeline (TAPI), Central Asia–South Asia Electricity Transmission and Trade Project (CASA-1000) and the China-Pakistan Economic Corridor (CPEC). The analysis reveals a complex web of opportunity and vulnerability. CPEC, a project that involves upgrading roads, railways, and energy infrastructure to facilitate trade and transportation between the Pakistan and China, has delivered over 13 GW of power capacity through coal, hydro, solar, and wind projects. However, it has also contributed to Pakistan's US$ 1.4 billion in unpaid energy debts and drawn security risks—including militant attacks on Chinese workers between 2021 and 2024. Qatar's US$ 15 billion LNG agreement addressed Pakistan's gas deficit but has become a financial strain amid declining domestic energy demand and currency depreciation. Meanwhile, instability in Afghanistan threatens to derail the US$ 7.7 billion TAPI pipeline and the US$ 1.16 billion CASA-1000 transmission line, both of which are critical to Pakistan's regional integration and energy diversification. Despite these challenges, serious momentum is building. Pakistan's domestic energy system remains under strain, with over 60% of demand met by imported fossil fuels and widespread transmission losses weakening grid reliability. Yet a shift is underway. Solar and wind energy now account for 10% of installed capacity, and the government has pledged to reach 60% clean energy by 2030, including targets to electrify 30% of road transport. Meeting this goal will require 22 GW of new renewable capacity, competitive procurement, and grid modernisation. However, persistent fiscal stress, climate vulnerability, and geopolitical friction continue to test Pakistan's credibility as a stable energy partner in the region.
Qatar Tribune
a day ago
- Qatar Tribune
China urged to take bolder steps to tackle price wars, deflation
Agencies Beijing's latest push to curb price wars may help ease deflationary pressures, but analysts warn the current measures fall short of addressing deeper structural problems facing the world's second-largest economy. China's GDP deflator – a broad measure of prices across goods and services – has been negative since the second quarter of 2023, while consumer prices have fallen for four straight months year-on-year. To stop the deflationary spiral, Chinese authorities should address the cause: weak domestic demand, analysts said. 'So far, attempts to revive inflation by trimming supply and reducing overcapacity have shown limited results,' Miao Yanliang, chief strategist at Beijing-based investment bank China International Capital Corporation (CICC), wrote in a research note. 'Weak demand remains the underlying problem.' Despite policymakers flagging cutthroat competition as a concern at the tone-setting Central Economic Work Conference last December, there are few signs of a rebound in prices, said Miao, who previously worked as a senior economist at the State Administration of Foreign Exchange for a decade. Miao attributed the current deflationary spiral to downturns in the financial and property sectors as well as diminishing income expectations among Chinese households. The warning came as the Chinese economy grapples with persistent structural challenges. Excess capacity across multiple sectors has suppressed both producer and consumer prices, while job insecurity and a prolonged property slump have made households reluctant to spend. China's consumer price index (CPI), a key gauge of inflation, declined for a fourth straight month in May – falling 0.1 per cent year on year, according to the National Bureau of Statistics. The producer price index (PPI) has continued to contract since October 2022. June price data is scheduled for release on week, China's top leadership addressed 'disorderly low-price competition' during a meeting of the Central Financial and Economic Affairs Commission, the Communist Party's highest economic policymaking body. It pledged to cut production capacity in an 'orderly' fashion, though without naming specific industries or targets. Compared to supply-side adjustments, analysts said demand-side stimulus remains the most effective lever for tackling deflation. To break the cycle, the CICC note recommended repairing 'corporate balance sheets' through capital injections, interest subsidies and corporate restructuring. This would help revive investment sentiment and employment, paving the way for a recovery in household income and assets, it added. Miao also called for raising household incomes by stabilising employment, increasing cash flow and strengthening the social safety net to ease consumer concerns and unlock spending potential. Chinese authorities have doubled down on subsidies, including a 300 billion yuan central government trade-in programme this year, to stimulate domestic consumption amid external headwinds. But there are fears the impact could be limited. 'When it comes to boosting consumption, there are few policy tools available to generate substantial traction on the demand side,' Mao Zhenhua, co-director of Renmin University's Institute of Economic Research, told a forum in Hong Kong on risks have been exacerbated by falling investment returns and mounting pressure on income and employment, with external headwinds also weighing on prices, he warned. The trade war with the United States would have 'a lasting impact on China's medium- to long-term economic fundamentals' and could further intensify the country's 'involutionary' dynamics, Mao added – a term used by officials to describe intense and self-defeating domestic competition.
