China鈥檚 July 2025 decision to block European-made medical devices from large-scale government contracts marks a new turn in the ongoing trade tensions between the world鈥檚 biggest economies. The move, made in response to a European Union policy that restricts Chinese suppliers from winning large public contracts, is hitting Europe鈥檚 top medical technology exporters.
The products involved are not small tools or everyday equipment, but complex and high-value machines such as magnetic resonance imaging scanners, computed tomography systems, surgical robots and radiation therapy units. These are the kinds of devices for which European manufacturers such as Siemens Healthineers and Philips are well-known. Most are expensive enough to fall above the threshold targeted by the new rules, which apply to contracts worth more than 45 million yuan ($6.3 million).
While the rule technically applies only to imported devices, it strongly encourages European companies to shift production to China if they want to remain competitive in public hospital tenders. Some companies already operate local manufacturing sites, which may help them avoid being shut out entirely. But for many, this situation raises tough questions about how much more to invest in China, especially given concerns around technology sharing and supply chain risks.
The real winners in the short term are Chinese companies such as Mindray and United Imaging, which now face reduced foreign competition in major domestic deals. These companies have been growing quickly, and the new policy gives them an even bigger platform in one of the world鈥檚 largest healthcare markets. With public hospitals accounting for a major share of device demand, that could accelerate the rise of national champions at the expense of foreign companies.
For European exporters, the challenge now is not just about this single policy. It is about a larger shift, in which market access is increasingly tied to political alignment and industrial policy decisions. Medical technology, once seen as mostly outside the realm of trade disputes, is now clearly part of the bigger picture. The medical device industry, much like semiconductors and renewable energy, is being pulled into a broader contest over control, sovereignty and industrial self-sufficiency. If this trend continues, the result may be a more divided global market, where healthcare equipment and innovation are shaped as much by government policy as by medical needs. That is a tough pill to swallow for companies that built their strategies on open markets and global supply chains. The cost may be counted not just in lost contracts, but in accelerating fragmentation of the global medtech landscape.
US Tariffs are shifting - will you react or anticipate?
Don鈥檛 let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData