EU Bars Chinese Firms from Major Medical Equipment Contracts Amid Security Concerns

 The European Union has barred Chinese firms from bidding on major medical equipment contracts for public hospitals and research institutions, citing national security and data privacy concerns. 

The decision, announced by the European Commission on Tuesday, June 17, affects contracts worth over €1.5 billion annually, targeting advanced imaging systems, ventilators, and diagnostic tools. The move escalates trade tensions with Beijing, which called it “protectionist.”

EU Trade Commissioner Valdis Dombrovskis stated that Chinese companies, including giants like Mindray and United Imaging, posed risks due to potential data leaks to the Chinese government, given their integration of AI and cloud-based systems. A 2024 EU report flagged vulnerabilities in medical devices connected to hospital networks, citing a 2023 cyberattack on a German hospital linked to Chinese-made equipment. The ban applies to tenders under the EU’s Public Procurement Directive, prioritizing European and allied suppliers like Siemens and Philips.

China’s Ministry of Commerce condemned the decision, threatening retaliatory tariffs on EU exports.  European healthcare providers worry about supply chain disruptions, as Chinese firms supplied 30% of imaging equipment in 2024. The EU plans to invest €500 million in domestic production to fill the gap, but analysts warn of delays and higher costs through 2027.