China imposes restrictions on European companies in medical device tenders.

China has announced a ban on European companies participating in government tenders for medical equipment, in response to recent EU restrictions on similar Chinese products.

The Chinese newspaper Global Times reported on Sunday that the Ministry of Finance has issued a decision barring European companies from entering Chinese government tenders for the purchase of medical equipment with budgets exceeding 45 million yuan (about $6.28 million).

According to the newspaper, the decision excludes European companies with investments and factories within China, while it only applies to those that produce goods outside of China.

The ministry added that the restrictions "have taken immediate effect," a move that reflects a mutual escalation of economic measures between the two sides.

For its part, the Chinese Ministry of Commerce confirmed in a statement that Beijing has repeatedly expressed its desire to resolve disputes with the European Union through dialogue, but the bloc has continued to "impose restrictive measures and build new protectionist barriers," according to the ministry.

This decision follows the European Commission's announcement on June 20 that it would exclude Chinese companies from participating in tenders for medical devices worth more than €5 million in EU member states, as part of what it said were measures to protect the European market from unfair practices.