China, EU deadlocked on medical devices, hybrid cars

Beijing and Brussels remain “deadlocked” on trade in medical devices following discussions in Beijing this week, reports the South China Morning Post citing an inside source. The source said that “intensive consultations” were under way about Brussels’ plan to launch import safeguards against made-in-China plug-in hybrid electric vehicles (PHEVs).

Vice-Minister of Commerce Ling Ji–China’s deputy international trade representative–held discussions with Ditte Juul Jorgensen, the European Commission’s director general for trade and economic security, on Wednesday and Thursday in preparation for a second round of trade talks, the Ministry of Commerce said.

The public procurement of medical devices and imports of Chinese PHEVs have been points of tension between Beijing and Brussels. The EU barred Chinese medical device companies from bidding for public tenders worth more than €5 million ($5.7 million) for five years in June last year after it said an investigation found “clear evidence” of Chinese discrimination against European firms in limiting EU medical device producers’ access to government contracts in China. The following month, China excluded EU companies without operations in China from government medical device contracts valued at more than RMB 45 million ($6.7 million).