COMMISSION STAFF WORKING DOCUMENT Factual findings of the IPI investigation on the procurement market for medical devices in the People’s Republic of China Accompanying the document REPORT FROM THE COMMISSION pursuant to Article 5(4) of Regulation (EU) 2022/1031 on the investigation under the International Procurement Instrument concerning measures and practices of the People's Republic of China in the public procurement market for medical devices
Date: 2025-01-14
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: China, award of contract, import restriction, market access, market supervision, medical device, originating product, public procurement, supplies contract, tendering

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 14.1.2025  SWD(2025) 2 final  COMMISSION STAFF WORKING DOCUMENT  Factual findings of the IPI investigation on the procurement market for medical devices in the People’s Republic of China       Accompanying the document REPORT FROM THE COMMISSION pursuant to Article 5(4) of Regulation (EU) 2022/1031 on the investigation under the International Procurement Instrument concerning measures and practices of the People's Republic of China in the public procurement market for medical devices      {COM(2025) 5 final}  
 
 
1.  Alleged measures and practices in the Notice of Initiation  

(1) 

In the Notice of Initiation1, the Commission identified the following alleged measures 
and practices implemented by the PRC at both central and local level, and applying to 
all public entities procuring medical devices, including State-owned enterprises such as 
public hospitals: 

1.1.  Measures and practices favouring the procurement of domestic medical devices and 

services, by means of, inter alia: 

− 

−  Article  10  of  the  Government  Procurement  Law  of  the  PRC  (‘GPL’)2,  which 
implements  the  ‘Buy  China’  policy  and  provides  that  “government  entities  shall 
procure domestic goods, services and works, except: (a) when the goods, services and 
works are not available within the territory of the People’s Republic of  China or are 
not  available  under  reasonable  commercial  terms;  (b)  when  the  goods,  services  and 
works procured are intended for use outside China; and (c) when otherwise specified 
by  other  laws  and  regulations”.  ‘Buy  local’  initiatives  implemented  by  local 
authorities also favour locally manufactured goods;  
the  requirement  in  the  ‘Made  in  China  2025’  Strategy3  (‘MIC  2025’)  that  that 
hospitals’  procurement  of  domestically  produced  mid  and  high-end  medical  devices 
should reach 50 % by 2020 and 70 % by 2025;  
the requirement in the ‘Notice on Examination and Guidance Criteria for Government 
Procurement  of  Imported  Products’  No  551  (‘Document  551’)  of  20214  that  local 
authorities increase the domestic procurement rate of 315 products, out of which 178 
are  medical  devices  (for  137  of  them  imposing  a  requirement  to  procure  100 % 
domestic products); 
the  requirement  in  the  ‘Notice  on  Deepening  the  Reform  of  the  Medical  and  Health 
System’5  Guo  Ban  Fa  [2015]  No.  34  that  public  hospitals  have  to  give  priority  to 
domestic  medical  devices  and  its  encouragement  to  purchase  domestic  high-value 
medical devices under a centralised procurement. 

− 

− 

1.2.  Measures and practices restricting the procurement of imported medical devices 

1   Notice  of  initiation  of  an  investigation  pursuant  to  the  International  Procurement  Instrument  concerning 
measures  and  practices  of  the  People's  Republic  of  China  in  the  public  procurement  market  for  medical 
devices, (C/2024/2973), 24.4.2024 

2   The Government Procurement Law of the People's Republic of China, Order of the President of the People's 

Republic of China No.68 of 29 June 2002 

3   ‘Notice  of  the  State  Council  on  Issuing  the  “Made  in  China  (2025)”’  No.28  [2005]  of  the  State  Council, 
available  at:  https://www.gov.cn/zhengce/content/2015-05/19/content_9784.htm  (accessed  on  23  September 
2024) 

4   ‘Notice  on  Issuing  “Guiding  Audit  Standards  for  Government  Procurement  of  Imported  Products”’  (2021 
Edition),  Document  Issued  by  Department  of  Treasury,  Ministry  of  Finance  and  No.  2  Department  of 
Equipment  Industry,  Ministry  of  Industry  and  Information  Technology,  Treasury  Note  [2021]  No.  551, 
available 
/ 
https://www.cgwenjian.com/view/industry/202110110000184101?zt_id_from=54 (accessed on 23 September 
2024) 

https://aimg8.dlssyht.cn/u/2074671/ueditor/file/1038/2074671/1629090344664695.pdf 

at: 

5   ‘Notice of the General Office of the State Council on Printing and Distributing the Summary of the Work in 
2014 and the Key Work Tasks in 2015 on Deepening the Reform of the Medical and Health System’ Guo Ban 
Fa [2015] No. 34 

1 

 
 
 
 
 
 
 
 
 
 
 
 
 
− 

the  ‘Administrative  Measures  for  the  Procurement  of  Imported  Goods’  (the 
‘Administrative Measures’)6, which lay down more stringent rules for the procurement 
of  imported  products  compared  to  the  procurement  of  domestic  ones  such  as  (i)  a 
rigorous  application-evaluation-approval  procedure  for  the  procurement  of  imported 
products,  with  an  objective  to  verify  whether  available  domestic  products  exist  and 
should  be  procured  instead  of  the  imported  ones;  (ii)  a  mandatory  clause  on 
safeguarding national interests and social public interests to be included specifically in 
the  contracts  concerning  procurement  of  imported  goods  with  possibility  of 
termination of the contract on this ground and (iii) explicit provisions on using offsets 
in  government  procurement  of  imported  products,  such  as  granting  priority  to  the 
procurement of imported products from suppliers who have transferred technology to 
Chinese enterprises.  

1.3.  Imposing  conditions  in  its  centralised  procurement  of  medical  devices  leading  to 

abnormally low bids that cannot be sustained by profit-oriented companies 

2.  Findings of the investigation 

(2)  During the investigation, the Commission gathered further information with respect to 
the  alleged  measures  and  practices  and  their  implementation  and  identified  additional 
ones.  

(3) 

In the sense of Article 2(1)(i) of the  IPI Regulation, a measure or practice  means any 
legislative, regulatory or administrative measure, procedure or practice, or combination 
thereof, adopted or maintained by public authorities or individual contracting authorities 
or contracting entities at any level. 

(4)  The investigation confirmed the existence and application of the measures mentioned in 
the  Notice  of  Initiation  and  the  Commission  identified  additional  ones.  The 
investigation  showed  that  the  measures  and  practices  favouring  the  procurement  of 
domestic  medical  devices  and  those  restricting  the  procurement  of  imported  medical 
devices,  referred to  in  the Notice of  Initiation, are two interlinked elements  of a  ‘Buy 
China’  policy  implemented  by  the  GOC,  which  sets  a  generally  applicable  preference 
for  the  procurement  of  domestic  medical  devices  to  the  detriment  of  imported  ones. 
Therefore,  the  Commission  decided  to  examine  these  two  types  of  measures  and 
practices jointly, and the centralised volume-based procurement separately. 

2.1.  The ‘Buy China’ policy  

2.1.1.  Policy measures encouraging the domestic medical devices industry 

6   ‘Circular  of  the  Ministry  of  Finance  on  Issuing  the  Measures  for  the  Administration  of  Government 
Procurement  of  Imported  Products’  Caiku  [2007]  No.  119,  available  at:  https://www.gov.cn/zwgk/2008-
01/15/content_858659.htm (accessed on 23 September 2024) 

2 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(5)  The  Commission  found  that  in  the  PRC  the  manufacturing  of  medical  devices, 
particularly  the  high-end  segment,  is  a  strategic  sector,  which  is  encouraged  and 
supported 
tools,  notably  public  procurement.,  The 
implementation  of  this  policy  through  public  procurement  is  aimed  to  directly  favour 
domestic medical devices to the detriment of imported ones.  

through  various  policy 

(6)  High-performance  medical  devices  are  one  of  the  ten  core  industries  identified  in  the 
MIC  20257,  a  national  strategic  and  industrial  plan  aimed  to  shift  Chinese  industry  to 
higher value-added manufacturing and make China a global manufacturing powerhouse 
for ten industries. The ‘Made in China 2025 technology roadmap for key areas’8 (the ‘MIC 
Roadmap’),  which  specifies  goals  for  each  industry  identified  in  the  MIC  2025,  sets 
specific  targets  for  the  share  of  domestically  produced  high-end  medical  devices 
procured  by  county  hospitals,  which  should  reach  50  %  by  2020,  70  %  by  2025,  and 
95 % by 2030.     

(7)  Since  2010,  the  PRC  has  put  in  place  a  sector-specific  five-year  plan  for  medical 
devices.  The  latest,  the  ‘14th  Five-Year  Plan  for  the  Medical  Equipment  Industry 
Development’9  (‘14th FYP’),  encourages the development  of high-end medical  devices 
through  various  support  tools,  including  public  procurement10,  with  an  objective  to 
replace imported products by domestic supply11.  

(8)  The  ‘National  Medium-  and  Long-Term  Science  and  Technology  Development  Plan 
(2006-2020)’  12 lists advanced medical equipment and biomedical materials among the 
“focus areas and their priority themes” for development13 and identifies various policy 
tools for such development, through the implementation of ‘fiscal and taxation policies 

7   (VI)  10.  “(...)  Improve  the  innovation  ability  and  industrialization  level  of  medical  apparatus  and  give 
priority  to  developing  high-performance  diagnostic  equipment  including  image  documentation  equipment 
and  medical  robot,  high-value  medical  consumables  including  fully  degradable  intravascular  stent,  and 
wearable and remote diagnostic mobile medical products. Realize breakthrough and application of biological 
3D printing technology, induced pluripotent stem cell technology and other new technologies.” 
8    https://www.gov.cn/xinwen/2015-09/29/content_2940676.htm (accessed on 23 September 2023), 
      https://www.cae.cn/cae/html/files/2015-10/29/20151029105822561730637.pdf  (accessed  on  23  September 
(accessed  on  23 

2023)  and  http://www.qbj.gov.cn/qbjq/uploadfiles/ecyq/2019032810262811269.pdf 
September 2024) 

9   Notice on printing and distributing the "14th Five-Year Plan" for the development of the medical equipment 
industry  Ministry  of  Industry  and  Information  Technology  Liangui  [2021]  No.  208,  available  at: 
https://www.gov.cn/zhengce/zhengceku/2021-12/28/content_5664991.htm (accessed on 23 September 2024) 
10   The  14th  FYP  instructs  to  “further  strengthen  the  government  procurement  management  and  support  the 

medical equipment industry development”. 

11   In  particular,  the  14th  FYP  provides  that  “local  governments,  industrial  funds  and  social  resources  will  be 
guided to support the breakthroughs of medical-industry collaboration in developing medical equipment, key 
parts  and  basic  materials,  and  financial  investment  in  the  transformation  and  industrialization  of 
breakthroughs”.   

12   Outline  of  the  National  Medium-  and  Long-Term  Science and Technology  Development  Plan  (2006-2020) 
State  Council  No.  9  of  2006,  available  at:  https://www.gov.cn/gongbao/content/2006/content_240244.htm 
(accessed on 24 September 2024) 

13   In Point III.8 (51) 

3 

 
 
 
 
 
 
 
 
 
 
 
to encourage enterprise technological innovation’14; the strengthening of the ‘digestion, 
absorption  and  re-innovation  of  imported  technologies’15,  and  the  implementation  of 
‘government  procurement 
therefore, 
government  procurement  is  used  as  a  tool  to  promote  domestic  products  and  brands 
developed in the PRC. 

innovation’16; 

that  promotes 

indigenous 

(9)  The  ‘Notice  of  the  State  Council  on  the  Issuance  and  Implementation  of  Several 
Supporting  Policies  of  the  ‘Outline  of  the  National  Medium-  and  Long-Term  Science 
and Technology Development Plan (2006-2020)’, Guo Fa [2006] No. 617 refers in point 
(25) to "an examination system for the purchase of foreign products” under which “the 
purchaser shall  give priority to  the purchase of  domestic products  in  accordance with 
the  provisions  of  the  [GPL]”  and  “when  purchasing  foreign  products,  adhere  to  the 
principle  of  facilitating  indigenous  innovation  of  enterprises  or  digestion  and 
absorption  of  core  technologies,  and  give  priority  to  the  purchase  of  products  that 
transfer technology”. Point (30) of this Notice states that “the advanced equipment and 
products  formed  by  digestion,  absorption  and  re-innovation  shall  be  included  in  the 
scope of government procurement”.  

(10)  The ‘Notice on Deepening the Reform of the Medical and Health System’ Guo Ban Fa 
[2015] No. 3418 provides, under the heading ‘key tasks for deepening the reform of the 
medical  and  health  system  in  2015’  that  public  hospitals  “give  priority  to  the  use  of 
domestic  medical  equipment  and  instruments”  and  “encourage  the  purchase  of 
domestic high-value medical consumables”. 

(11)  The  ‘Guiding  Opinions  of  the  General  Office  of  the  State  Council  on  Promoting  the 
Healthy Development of the Medical and Pharmaceutical Industry’ Guo Ban Fa [2016] 
No. 1119 calls for strengthening the fiscal and financial support to the medical devices 
domestic  sector  through  “financial  support  methods  (...)  incentives  and  guidance, 
capital  injection,  application  demonstration  subsidies,  etc.”,  and  for  "improving 
government  procurement mechanisms”  by “strictly implementing the provisions of the 
[GPL]”.  In  this  respect,  the  guiding  opinions  stipulate  that  “if  domestic  drugs  and 

14   i.e. "implement the State's preferential tax policies on promoting technological  innovation, accelerating the 
transformation  of  scientific  and  technological  achievements  and  equipment  upgrading,  actively  encourage 
and support enterprises to develop new products, new processes and technologies”. 

15   e.g. “improve and adjust the national industrial technology policy, and strengthen the digestion, absorption 
and  re-innovation  of  imported  technologies.  Through  adjusting  the  structure  and  focus  of  government 
investment,  special funds will be set up to support the digestion, absorption and re-innovation of imported 
technologies,  and  support  the  research  and  development  of  major  technical  equipment  and  key  common 
technologies of major industries”. 

16  “Establish  a  coordination  mechanism  for  government  procurement  of  indigenous  innovative  products.  For 
important  high-tech  equipment  and  products  with  indigenous  intellectual  property  rights  developed  by 
domestic  enterprises,  the  government  implements  the  first-purchase  policy.  Provide  policy  support  for 
enterprises to purchase domestic high-tech equipment. Support the formation of technical standards through 
government procurement”.   

17   Circular of the State Council on Printing and Distributing Several Supporting Policies for the Implementation 
and 
National  Medium- 
at: 
(2006-2020),  Guo 

of 
of 
Technology  Development 
https://www.gov.cn/gongbao/content/2006/content_240246.htm (accessed on 23 September 2024) 

Science 
available 

[2006]  No. 

Long-Term 

the 
Plan 

Outline 

and 

the 

Fa 

6, 

18   ‘Notice of the General Office of the State Council on Printing and Distributing the Summary of the Work in 
2014 and the Key Work Tasks in 2015 on Deepening the Reform of the Medical and Health System’ Guo Ban 
Fa [2015] No. 34, available at: https://www.gov.cn/zhengce/content/2015-05/09/content_9716.htm (accessed 
on 23 September 2024) 

19   https://www.gov.cn/zhengce/content/2016-03/11/content_5052267.htm (accessed on 23 September 2024) 

4 

 
 
 
 
 
 
 
 
 
 
 
medical  devices  can  meet  the  requirements,  government  procurement  projects  must 
purchase  domestic  products  in  principle,  and  gradually  improve  the  level  of  domestic 
equipment allocation in public medical institutions”. 

(12)  The ‘Guiding Opinions on Expanding Investment in Strategic Emerging Industries and 
Cultivating  Strengthened  New  Growth  Points  and  Growth  Poles’  NDRC  High 
Technology (2020) Document No. 140920 lists high-end medical equipment and medical 
robots in the key industrial investment areas under “high-end equipment manufacturing 
industry” and thus entitle such equipment and robots to benefit from fiscal and financial 
support. The document encourages local governments “to set up special funding plans 
for  strategic  emerging  industries”  and  urges  “financial  institutions  to  innovate  and 
develop  financial  products  and  services  adapted  to  the  characteristics  of  strategic 
emerging  industries”  and  "increase  support  for  core  enterprises  in  the  production 
chain”.  

(13)  The  Commission  also  found  that  the  China  Medical  Equipment  Association  (the 
‘Association’) produces regularly a ‘Selection Catalogue of Excellent Domestic Medical 
Equipment  Products’  (the  ‘Catalogue’)21  under  the  direction  of  the  National  Health 
Commission  of  the  PRC22  (the  ‘NHC’),  which  is  the  main  regulator  of  the  healthcare 
system  in China.  The selection process  is  intended to  identify advanced, competitive, 
and high-quality domestic medical equipment for inclusion in the Catalogue. The scope 
of selection is “[d]omestic independent brand products”23. The Catalogue is intended as 
a  reference  for  healthcare  institutions  across  China  in  deciding  which  medical 
equipment to use.  

(14)  The Commission also found references to the Catalogue in several policy documents24 
released by the NHC and the Ministry of Science and Technology of the PRC (‘MST’) 

20   https://www.ndrc.gov.cn/xxgk/zcfb/tz/202009/t20200925_1239582.html (accessed on 23 September 2024) 
21   See Chinese Medical Equipment Association, Announcement on the Selection of Excellent Domestic Medical 
Equipment  Products,  2014,  http://www.nhc.gov.cn/ewebeditor/uploadfile/2014/05/20140526114014171.pdf.  
To date, there have been ten batches of products selected for inclusion in the Catalogue: 

      Third batch available at: https://mt.sohu.com/20170318/n483796226.shtml;  
      Sixth batch available at: https://www.cn-healthcare.com/articlewm/20200524/content-1115974.html;  
      Seventh  batch  available  at:  https://www.cn-healthcare.com/articlewm/20210621/content-1234071.html; 

Eighth batch available at: https://www.cn-healthcare.com/articlewm/20221010/content-1447444.html;  

      Tenth  batch,  available  at:  https://finance.sina.com.cn/roll/2024-09-21/doc-incpxsme9898809.shtml  (all 

accessed on 4 November 2024) 

22   In  2014,  China’s  former  National  Health  and  Family  Planning  Commission  (the  predecessor  of  the  NHC) 
charged the Association with the selection of “excellent domestic medical equipment products”. See in this 
respect  the  Announcement  on  the  Selection  of  Excellent  Domestic  Medical  Equipment  Products,  2014, 
http://www.nhc.gov.cn/ewebeditor/uploadfile/2014/05/20140526114014171.pdf.      

23   See  Chinese  Medical  Equipment  Association,  Announcement  on  the  Selection  of  Excellent  Domestic 

Medical Equipment Products, 2014: 

     http://www.nhc.gov.cn/ewebeditor/uploadfile/2014/05/20140526114014171.pdf.   
24  Response  to  Proposal  No.  3987  of  the  Third  Session  of  the  12th  National  People’s  Congress,  Response  to 
Proposal  No.  4808  at  the Third  Session  of  the  12th  National  People’s  Congress,  Response  to  Proposal  No. 
7401  of  the  Third  Session  of  the  12th  National  People’s  Congress  and  Response  to  Proposal  No.  1047 
(Category of Science and Technology No. 051) of the Third Session of the 12th National Committee of the 
Chinese  People’s  Political  Consultative  Conference;  Response  to  Proposal  No.  0624  (Commercial  and 

5 

 
 
 
 
 
 
 
 
 
 
 
that present the Catalogue as a tool for promoting the use and procurement of domestic 
medical devices by medical and healthcare institutions in accordance with the GPL as a 
key to promote the objective of strengthening China’s medical device industry.  

(15)  The Association is a national, non-profit social organization registered with the Ministry 
of  Civil  Affairs  for  the  medical  equipment  industry.25  However,  it  is  subject  to  the 
control,  or  at  least  strong  influence,  of  the  State  and  can  therefore  be  considered  as  a 
quasi-governmental  organization.  The  Measures  for  Comprehensive  Supervision  of 
Industry Associations and Chambers of Commerce provide for oversight by the Chinese 
Communist Party of the PRC over all industry associations.26  This is also reflected in 
the  Association’s  Constitution,  which  provides  that  it  “shall  adhere  to  the  overall 
leadership  of  the  Communist  Party  of  China,  and  establish  the  organization  of  the 
Communist Party of China in accordance with the provisions of the Constitution of the 
Communist Party of China”. In practice, a Party-linked organization embedded within 
the Association27 is involved in all major decisions, which, e.g., include the appointment 
and removal  of the  executive director  and oversight  over changes to  the Association’s 
Constitution. Therefore, the Catalogue released by the Association can be considered as 
a policy tool to steer public procurement of medical devices toward Chinese producers.    

2.1.2.  Legal measures related to the ‘Buy China’ policy regarding public procurement of 

medical devices  

(16)  The  government  procurement  of  medical  devices  in  the  PRC  is  governed  by  the  GPL 

and its implementing measures.  

(17)  Article  10  of  GPL  provides  that:  “[t]he  government  shall  procure  domestic  goods, 
construction and services, except in one of the following situations: (1) where the goods, 
construction or  services  needed are not  available within the territory of the  [PRC]  or, 
though  available,  cannot  be  acquired  on  reasonable  commercial  terms;  (2)  where  the 
items to be procured are for use abroad; and (3) where otherwise provided for by other 
laws and administrative regulations”. 

Tourism No. 035) of the Fifth Session of the Twelfth CPPCC [China’s National People’s Congress and the 
Chinese  People’s  Political  Consultative  Conference]  National  Committee;  Response  to  Proposal  No.  0692 
(Medical and Sports No. 079) of the  Fifth Session of the 12th National Committee of the Chinese People’s 
Political  Consultative  Conference;    Reply  to  Proposal  No.  6103  of  the  First  Session  of  the  13th    National 
People’s Congress and Reply to Proposal No. 4505 (Medical and Sports Class No. 636) of the Third Session 
of the 13th National Committee of the Chinese People’s Political Consultative Conference. -While not legally 
binding, these policy documents were issued by the  NHC and MST in response to proposals from CPPCC 
calling for the strengthening and prioritization of the domestic medical device industry. Notably, they suggest 
that  both  the  NHC  and  the  MST  view  the  Catalogue  as  key  to  promoting  the  objective  of  strengthening 
China’s medical device industry. 

25   The website of the Association cannot be accessed outside of China; however, the Commission has received 

insight into the information available on that website.  

26   See  National Development and Reform Commission,  Measures for Comprehensive  Supervision of Industry 
Associations  and  Chambers  of  Commerce,  2016,  available  at:  https://www.gov.cn/xinwen/2016-
12/29/content_5154008.htm (accessed on 4 November 2024). 

27   The Chinese Communist Party is embedded in the Association through the Organization for Party Building 
Work,  which  acts  as  the  Central  and  State  Organs Working  Committee,  i.e.,  a  local  agency  of  the  Central 
Committee  of  the  Communist  Party.    The  Organization  for  Party  Building  Work  is  involved  in  all  major 
decisions made by the Association. 

6 

 
 
 
 
 
 
 
 
 
 
(18)  This provision imposes an obligation on procuring entities to purchase domestic goods, 

except in the three exceptional circumstances specifically listed. 

(19)  When domestic goods are not available or cannot be acquired on reasonable commercial 
terms in the PRC, the procurement of imported goods is subject to a specific assessment 
and approval procedure laid down in the Administrative Measures, which implement the 
GPL  with  respect  to  the  procurement  of  imported  goods28.  Indeed,  Article  4  of  the 
Administrative  Measures  first  recalls  that  “in  case  of  government  procurement, 
domestic goods shall be purchased” and then, when the procurement of imported goods 
is “really necessary”, requires a specific approval to authorise such procurement. The 
approval, granted by the local financial departments, is based on the assessment by an 
expert  group  of  whether  there  are  goods  produced  in  the  PRC  with  technical 
specifications and functional use comparable to those of the imported goods.  

(20)  Article  5  of  the  Administrative  Measures  lays  down  the  principle  that  purchasing 
imported  goods  should  be  “conducive  to  indigenous  innovation  or  digestion  and 
absorption of core technologies by domestic enterprises” and requires to “give priority 
to purchasing goods that transfer technology” or “provide training services and other 
compensation trade measures”. Pursuant to Article 15, this priority must be specified in 
the procurement documents for the purchase of the imported goods.   

(21)  According to Articles 8 to 13 of the Administrative Measures, in order to purchase an 
imported good, the procuring entity must submit several documents for approval by the 
competent finance departments: i.e. a standard application form stating the reasons for 
an exemption to the prohibition resulting from Article 10 of the GPL; a copy of legal or 
policy documents encouraging the purchase of the imported good in question (if any); 
an  opinion  of  the  relevant  sectoral  authority  at  municipal  level  or  above;  and  the 
evaluation report from an expert panel. 

(22)  The  Administrative  Measures  are  implemented  and  clarified  by  the  ‘Notice  of  the 
General Office of the Ministry of Finance on Issues Concerning the Administration of 
Government Procurement of Imported Goods Cai Ban Ku [2008] No. 248 (‘Notice No 
248’) 29. 

(23)  Point 5 of Notice No 248 clarifies that, before procuring imported goods, the purchaser 
must  obtain  the  approval  of  the  financial  department.  If  the  procurement  of  imported 
goods  is  approved,  it  shall  be  clearly  stipulated  in  the  procurement  documents.  This 
provision  further  lays  down  that  if  the  procurement  is  carried  out  without  the  prior 
approval, the procurement documents shall clearly indicate that imported goods are not 
allowed  to  participate.  Finally,  if  the  procurement  documents  do  not  indicate  whether 
imported  goods  are  allowed  to  participate  or  not,  it  will  be  deemed  that  they  are  not 
allowed.  

28   The ‘Administrative Measures for the Procurement of Imported Goods’ are formulated in accordance with the 
GPL  and  other  laws  and  regulations,  in  order  to  implement  the  Notice  of  the  State  Council  on  the 
Implementation  of  Several  Supporting  Policies  of  the  Outline  of  the  National  Medium-  and  Long-Term 
Science  and  Technology  Development  Plan  (2006-2020),  promote  the  implementation  of  the  government 
procurement  policy  of  independent  innovation  and  regulate  the  government  procurement  of  imported 
products.    

29  http://www.da.gov.cn/daczj/0500/202109/52b4c4ac10a6434bb97336b080b05fe5.shtml 

(accessed  on  23 

September 2024) 

7 

 
 
 
 
 
 
 
 
 
 
 
   
  
 
(24)  Various  provincial  governments  have  introduced  local  measures  implementing  the 
Administrative  Measures,  some  of  which  set  additional  and/or  more  stringent 
requirements.  For  instance,  some  provincial  measures  require  to  carry  out  a  public 
consultation of applications for approval of the procurement of imported goods with a 
view to identifying domestic substitutes and objections from domestic manufacturers.30 
The  Commission  has  identified  the  following  provincial  measures  that  are  publicly 
available:  the  ‘Anhui  Province  (2022)  Notice  on  Regulating  Relevant  Matters 
concerning  Public  Health  Institutions’  Government  Procurement  of  Imported 
Products‘  (Anhui  Caigou  [2022]  No  365)31;  the  ‘Notice  of  the  Guangdong  Provincial 
Department  of  Finance  on  Regulating  the  Examination  and  Approval  of  Provincial 
Single-Source  Procurement  Methods  and  the  Approval  and  Management  of  Imported 
Products’ Yue Cai Procurement [2020] No. 13, the ‘Notice of the Guangdong Provincial 
Department of Finance on Optimizing the Management of Government Procurement of 
Imported  Products’  Yuecai  Procurement  [2021]  No.  132;  the  ‘Notice  of  the  Sichuan 
Provincial  Department  of  Finance  on  Standardizing  the  Examination  of  Government 
Procurement of Imported Products’ (Chuan Cai Cai [2012] No. 15)33; and the ‘Circular 
of  the  Zhejiang  Provincial  Department  of  Finance  on  Further  Strengthening  the 
Administration  of  Government  Procurement  of  Imported  Products’  Zhejiang  Cai  Cai 
Jian [2010] No. 5134. 

(25)  Certain local governments such as the Provinces of Guangdong, Sichuan, and Zhejiang, 
have  issued  annual  lists35  of  a  limited  number  of  medical  devices  reviewed  by  expert 
groups and deemed suitable for importation and thus subject to less stringent approval 
procedures.  For  instance,  the  Sichuan  Province  (2021)  Provincial  Government 
Procurement  Import  Products  List  for  2021-2022  contained  only  59  categories  of 
medical devices for which the procurement of imported goods was authorised36. These 
lists  are  updated  annually  or  every  two  years,  and  the  number  of  imported  goods 
allowed to be procured has been progressively reducing. Any specific good listed may 
be  removed  once  a  suitable  domestic  substitute  has  been  identified.  For  instance,  the 
Zhejiang  provincial  list  for  imported  medical  equipment  contained  232  products  for 
2018-201937, 215 products for 2019-202038 and 195 products for 2021-202239. The list 
of medical devices allowed to be imported released by the Guangdong Provincial Health 

30   For instance, https://www.sohu.com/a/475280349_121123889  
31   https://www.ahtba.org.cn/site/news/detail/925c9835-9de7-4ee1-8538-30ec2826a188  (accessed  on  22 August 

2024) 

32  https://cgzx.scnu.edu.cn/portalwebController.do?goArticleDetail&id=8a78b89d88800c9b01888e9915ca2169 

(accessed on 22 August 2024) 

33   https://info.cecbid.org.cn/detail/203104630.html (accessed on 8 July 2024) 
34   https://czj.hangzhou.gov.cn/art/2010/12/14/art_1655734_40941519.html (accessed on 22 August 2024) 
35   Guangdong  Provincial  Health  Commission  (2021)  Announcement  of  the  List  of  Imported  Products  for 
Provincial  Health  Institutions,  available  at:  https://wsjkw.gd.gov.cn/zwgk_gsgg/content/post_3233250.html 
(accessed on 22 August 2024); Sichuan Province (2021) Provincial Government Procurement Import Product 
List  for  2021-2022,  available  at:  https://www.innomd.org/article/6094a5a423ce965474205667  (accessed  on 
22 August 2024) and Notice of the Zhejiang Provincial Department of Finance on Announcing the 2021-2022 
Unified  Demonstration  List  of  Imported  Products  Purchased  by  the  Provincial  Government  (Medical 
Equipment), available at: https://www.sohu.com/a/449491228_120057163 (accessed on 22 August 2024) 

36   See https://www.innomd.org/article/6094a5a423ce965474205667  
37   https://xxgk.hznu.edu.cn/c/2018-12-11/2102197.shtml  
38   https://www.linhai.gov.cn/art/2019/12/25/art_1514544_42277885.html (accessed on 25 October 2024) 
39   https://xxgk.hznu.edu.cn/c/2021-05-10/2542476.shtml (accessed on 25 October 2024)  

8 

 
 
 
 
 
 
 
  
 
 
Commission saw a decreased from 132 to 46 between 2019 and 202140. The authorities 
of some Chinese provinces have issued statements stressing that, in principle, imported 
medical  devices  are  not  allowed  to  be  procured  and  supporting  the  procurement  of 
domestic ones.41 

(26)  The  Commission  also  found  that,  in  2020,  the  Health  Commission  of  Guangdong 
Province published an official Letter [2020] No 942 in which it supports the allocation of 
domestic  branded  medical  equipment  in  hospitals  and  more  specifically,  encourages 
hospitals to purchase medical equipment from Chinese brands.    

(27)  In  addition,  the  ‘Circular  of  the  Ministry  of  Health  on  Printing  and  Distributing  the 
Measures  for  the  Administration  of  Medical  Equipment  in  Medical  and  Health 
Institutions’,  Wei  Gui  Cai  Fa  [2011]  No.  2443  contains  references  specific  to  the 
procurement of medical devices. In this respect, Article 22 underlines that “where it is 
necessary  to  purchase  imported  medical  equipment,  the  approval  procedures  for  the 
procurement of imported equipment shall be strictly performed in accordance with the 
relevant provisions of the State”. As explained in recital (19), the approval procedures 
are laid down in the Administrative measures and their local implementing measures.  

(28)  Finally,  Document  551  lays  down  requirements  on  all  local  authorities to  increase  the 
procurement of domestic goods for 178 categories of medical devices. The target share 
of domestic  medical  devices varies  between 25  % and 100 %, with  a 100% target  for 
137 categories of medical devices.    

2.2.  Centralised volume-based procurement 

(29)  The volume-based procurement of medical devices is based on the acquisition of very 
large quantities of products subject to strong competition at national or provincial level 
to obtain lower prices. There are three forms of volume-based procurement: city-level or 
cross-cities  alliance  procurement;  provincial-level  procurement  and  cross-provinces 
alliance procurement. Various legal documents set up the organisation and management 
of volume-based procurement of medical devices. 

(30)  To  achieve  lower  prices,  the  entity  organising  the  tender  establishes  a  reference  (or 
ceiling)  price,  which  appears  to  be  too  low,  and  maximum  price  margins  for  bid 
selection  forcing  bidders  to  bid  either  below  the  reference  or  ceiling  price  or  at  price 
close to the (still unknow) lowest price offered. The parameters for the determination of 
the reference price  are not clearly established. The bidders compete only on price (i.e. 
the lowest offers win) and the contract is awarded to a group of bidders guaranteeing the 
requested quantities at  the lowest  price, according to  the parameters established in  the 
tender. Therefore, in volume-based procurement, the level of the reference price and the 

40  https://m.innomd.org/article/60b837db23ce965474ffae9d; 
     https://www.cn-healthcare.com/articlewm/20210323/content-1202052.html  
41   e.g.: https://m.innomd.org/article/60b837db23ce965474ffae9d (accessed on 23 September 2024) 
42   Letter of the Guangdong Provincial Health Committee on Proposal No. 20200567 of the Third Session of the 
CPPCC  12th  Guangdong  Provincial  Committee  [2020]  No  9  of  24  March  2020,  available  at 
https://wsjkw.gd.gov.cn/gkmlpt/content/3/3055/post_3055444.html#2532 (accessed on 29 October 2024) 

43   https://www.gov.cn/gongbao/content/2011/content_1960690.htm (accessed on 23 September 2024) 

9 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
price  margins  for  acceptable  bids  are  determinant  to  frame  the  competition  among 
bidders.  

(31)  At the time of the investigation, with respect to medical devices, the PRC has organised 

volume-based procurement only for medical consumables. 

(32)  The  Commission  has  identified  the  following  measures  governing  the  centralized 
procurement of medical devices, and in particular medical consumables, in the PRC: the 
‘Notice  of  the  Ministry  of  Health  on  Further  Strengthening  the  Management  of 
Centralized Procurement of Medical Devices’ Wei Gui Cai Fa [2007] No. 20844 which 
aims  to  standardise  and  promote  the  centralised  procurement  of  medical  devices; 
the ’Notice of the reform plan to manage high-value medical consumables’ Guo Ban Fa 
[2019] No. 37  (‘Notice [2019] No. 37’)45;  the ’Guiding  Opinions on Carrying out  the 
Centralized  Procurement  and  Use  of  High-value  Medical  Consumables  Organized  by 
the State’ 46 and the ‘Guideline on Implementing the National Centralized Volume-based 
Procurement  and  Use  of  High-value  Medical  Consumables’  Medical  Insurance  Fa 
[2021] No. 31 (‘Guideline [2021] No. 31’)47. 

(33)  In  addition,  during  the  consultations,  the  PRC  clarified  certain  legal  bases  of  volume-
based procurement for medical consumables : (i) the ‘Pilot Program for the Centralized 
Procurement and Use of Drugs Organized by the State’ of the State Council Fa [2019] 
No. 248; (ii) the ‘State Council on promoting the centralized procurement of drugs Views 
on  the  development  of  a  normalized  system’  Guo  Ban  Fa  [2021]  No.  249  and  (iii)  the 
‘Notice of the Office of the National Medical Security Administration on Strengthening 
Regional  Coordination  and  Improving  the  Quality  and  Expansion  of  Centralized 
Pharmaceutical Procurement in 2024’ Medical Insurance Office [2024] No. 850.    

(34)  Notice  [2019]  No.  37  has  for  an  objective  to  inter  alia  “comprehensively  and  deeply 
control high-value medical consumables” and “improve the price formation mechanism 
and reduce the inflated prices of high-value medical consumables”. This notice calls for 
improving  the  methods  for  centralized  volume-based  procurement  of  high-value 
medical  consumables  “with  large  clinical  usage,  higher  procurement  amount,  more 
mature  clinical  use,  and  production  by  multiple  enterprises”  and  encourages  medical 

44   https://www.gov.cn/zwgk/2007-06/29/content_666514.htm (accessed on 23 September 2024)  
45   https://www.gov.cn/zhengce/content/2019-07/31/content_5417518.htm (accessed on 24 September 2024) 
46   Eight departments including the National Health Insurance Administration issued the  "Guiding Opinions on 
Carrying  out  the  Centralized Procurement  and  Use  of  High-value  Medical  Consumables  Organized  by  the 
State",  available  at:  https://www.nhsa.gov.cn/art/2021/6/4/art_14_5209.html  (accessed  on  24  September 
2024) 

47   The  National  Health  Insurance  Administration,  the  National  Development  and  Reform  Commission,  the 
Ministry of Industry and Information Technology, the Ministry of Finance, the National Health Commission, 
the State Administration for Market Regulation, the State Food and Drug Administration, and the Logistics 
Support  Department  of  the  Central  Military  Commission  have  issued  guidance  on  the  centralized 
procurement 
- 
high-value  medical 
https://www.nhsa.gov.cn/art/2021/6/4/art_37_5208.html (accessed on 24 September 2024) 

consumables 

organized 

state 

and 

use 

the 

by 

of 

48   https://www.gov.cn/zhengce/content/2019-01/17/content_5358604.htm accessed on 24 September 2024) 
49   https://www.gov.cn/gongbao/content/2021/content_5585228.htm (accessed on 24 September 2024) 
50   https://www.gov.cn/zhengce/zhengceku/202405/content_6952505.htm (accessed on 24 September 2024) 

10 

 
 
 
 
 
 
 
 
 
 
 
institutions  to  “jointly  carry  out  volume  negotiation  and  procurement,  and  actively 
explore  cross-provincial  alliance  procurement”.  A  general  objective  of  the  notice, 
which applies to all the measures covered by it, including the organisation of volume-
based  procurement,  is  to  “support  domestic  high-value  medical  consumables  with 
indigenous  intellectual  property  rights  to  enhance  their  core  competitiveness”. 
Although  the PRC claimed during the consultations that  this  notice is  not applied and 
that all the consumables subject to volume-based procurement receive equal treatment, 
it  did  not  provide  any  evidence  to  substantiate  this  claim.  On  the  contrary,  the 
invitations  to  bid  and  the  procurement  documents  for  national  volume-based 
procurement explicitly refer to this notice51. 

(35)  The  Medical  Insurance  Letter  [2022]  No.  136  of  the  National  Medical  Security 
Administration52  clearly  mentions  in  point  2 ‘On  increasing  support  for  domestic 
medical devices’ that centralized volume-based procurement is “objectively supporting 
domestic  high-quality  enterprises  of  the  same  quality  but  lower  cost  to  win  the 
competition”,  while  point  3  sets  as  an  objective  to “provide  for  the  development  of 
domestic high-quality enterprises”.  

(36)  The volume-based tenders for the procurement of medical consumables cover a major 
proportion  of  the  overall  procurement  volume  of  the  concerned  products,  for  some  of 
them more than 95 % of the annual demand. According to Guideline [2021] No. 31, the 
purchase  volume  determined  according  to  the  indications  of  demand  submitted  by 
medical  institutions,  combined  with  factors  such  as  the  volume  used  in  the  previous 
year, clinical  use status  and medical  technology  progress. The  Guideline  provides that 
all  public  medical  institutions  shall  participate  in  this  system  for  high-value  medical 
consumables53,  which  is  further  confirmed  in  the  announcements  and  procurement 
documents of volume-based procurement procedures mentioned in recital (34) that also 
refer  to  this  Guideline.  Furthermore,  Guideline  [2021]  No.  31  specifies  the  rules  for 
bidding and selection in volume-based procurement of high-value medical consumables. 
According  to  these  rules,  similar  high-value  medical  consumables  with  similar 
therapeutic purposes, clinical efficacy, and product quality are grouped and subject to a 
price-only competition. It is specified that “[if] more than one enterprise is selected, the 

51   Joint  Procurement  Office  National  Organization  Coronary  Stent  Centralized  Procurement  Document  (GH-
HD2020-1):  https://hc.tjmpc.cn:10128/upload/202010/16/202010161537489949.pdf;  Announcement  on  the 
Centralized  Procurement  of  Intraocular  Lens  and  Sports  Medicine  Medical  Consumables  (No.  1 
https://hc.tjmpc.cn:10128/public/show14416.html;  Announcement  on 
the  Centralized  Procurement  of 
Artificial Joints by the State: https://hc.tjmpc.cn:10128/public/show14367.html, Announcement on Continued 
Procurement  upon  Expiration  of  Centralized  Procurement  Agreement  for  Artificial  Joints  (No.  1): 
https://hc.tjmpc.cn:10128/public/show14430.html;  National  Organization  of  Artificial  Joints  Centralized 
Procurement Document (GH-HD20211:  

      https://hc.tjmpc.cn:10128/upload/202108/23/202108231724279599.pdf; 
Orthopaedic 
Procurement 
Consumables 
https://hc.tjmpc.cn:10128/upload/202209/07/202209072042181898.pdf.  

Centralized 

Spine 

National 
Document 

Organization 

of 

(GH-HD2022-1):     

52   The  National  Medical  Security Administration's  response  to  the  Fifth  Session  of  the  13th  National  People's 

Congress Response to recommendation No. 8427, available at: 

      http://www.nhsa.gov.cn/art/2022/9/1/art_110_8940.html  
53   Point II (5) of the Guideline. 

11 

 
 
 
 
 
 
 
 
 
 
price difference between different enterprises should be reasonably  controlled”. At the 
end  of  the  procedure,  a  list  of  selected  bidders  is  established  with  the  corresponding 
purchase volume.   

(37)  The  Commission  established  that  the  production  of  medical  devices  in  the  PRC  is 
subsidised  through  various  tools  and  programs,  which  is  particularly  relevant  for  the 
understanding  of  how  the  PRC’s  system  of  centralized  volume-based  procurement 
works in practice, as it usually has an impact on the incentives or ability of bidders to 
offer particularly low prices.  

(38)  Medical devices are mentioned in various policy documents and catalogues of the PRC 
listing  ‘encouraged’  industries  and  products,  including  the  12th  Five-Year  Plan  for  the 
Medical  Device  Technology  Industry  (2011-2015)54,  the  MIC  202555,  the  ‘Guiding 
Catalogue  for  Industry  Restructuring  (2019  Version’56  as  well  as  2024  edition57),  the 
'Industry  'Four  Basics'  Development  Catalogue  (2016  edition)’58,  the  ’Guiding 
Catalogue  of  Key  Products  and  Services  for  Strategic  Emerging  Industries  (2016 
Edition)59 and the ‘Intelligent Manufacturing Development Plan (2016-2020)’60, which 
is based on the MIC 202561. 

54   https://most.gov.cn/xxgk/xinxifenlei/fdzdgknr/fgzc/gfxwj/gfxwj2011/201201/t20120118_92017.html 

(accessed on 11 October 2024) 

55   For more details, see Commission  staff  working  document  on significant  distortions  in  the  economy of  the  people's 
republic of China for the purposes of trade defence investigations, page 70, https://ec.europa.eu/transparency/documents-
register/detail?ref=SWD(2024)91&lang=en   

56   https://www.gov.cn/zhengce/2021-12/27/content_5713262.htm (accessed on 15 October 2024). This version 
contains a list of medical devices  in the “encouragement” category: “new medical diagnostic equipment and 
reagents,  digital  medical  imaging  equipment,  artificial  intelligence-assisted  medical  equipment,  high-end 
radiotherapy  equipment,  electronic  endoscopy,  surgical  robot  and  other  high-end  surgical  equipment,  new 
stents,  prostheses  and  other  high-end  implant  intervention  equipment  and  materials  and  additive 
manufacturing  technology  development  and  application,  critical  illness  life  support  equipment,  mobile  and 
remote  diagnostic  equipment,  new  genetic,  protein  and  cell  diagnostic  equipment”  and  also  "intelligent 
medical,  medical  imaging-assisted  diagnostic  system”,  ”medical  rehabilitation  robots”  and  ”medical  fine 
ceramic materials and components“ mentioned in other parts of the document. 

57   https://www.ndrc.gov.cn/xxgk/zcfb/fzggwl/202312/t20231229_1362999.html  In  the  2024  edition:  medical 
core  technology  breakthroughs  and  applications,  innovative  development  of  high-end  medical  devices, 
medical electronics, medical imaging aided diagnosis systems and medical robots. 

58   In  the  category  ‘X.  Biomedicine  and  high-performance  medical  devices’.  The  catalogue  aims  at,  inter  alia, 
Guiding  financial  institutions,  credit  guarantee  industries,  and  insurance  industries  to  make  full  use  of  a 
variety of financial means to support enterprises engaged in research and development, production, and use 
of products and technologies listed in the catalogue - https://www.waizi.org.cn/doc/24372.html  

59   Point  4.2  ’Biomedical Engineering Industry’,  Sub-points  4.2.1. ‘Medical  imaging  equipment  and  services’, 
4.2.2.  ‘Advanced  therapeutic  equipment  and  services’  and  4.2.3.  ‘Medical  examination  inspection 
instruments and services’. 

      Available  at:  https://www.ndrc.gov.cn/xxgk/zcfb/gg/201702/t20170204_961174.html  (accessed  on  24 

September 2024) 

60   High-performance medical equipment is also mentioned among the key areas for intelligent transformation 

https://www.gov.cn/xinwen/2016-12/08/content_5145162.htm (accessed on 24 September 2024) 

61  The  Commission  has  found  out  in  the  above-mentioned  anti-subsidy  investigations  that  industries 
“encouraged” through MIC 2025 are eligible to considerable funding via dedicated State funds, such as the 
National Integrated Circuit fund, the Advanced Manufacturing Fund and the Emerging Industries Investment 
Fund.   

12 

 
 
 
 
 
 
 
 
 
 
 
(39)  In addition, several categories of medical devices62 are ‘listed in the ‘2016 Catalogue of 
High-tech  Fields  Supported  by  the  State’63  and  thus  their  domestic  producers64  are 
entitled to a reduction of the income tax rate to 15 % instead of 25% pursuant to Articles 
25 and 28 of the Law on Enterprise Income Tax (‘EIT Law’)65.  Moreover, pursuant to 
Article 30(1) of the EIT Law, as implemented by Article 95 of the Implementation Rules 
for the EIT66, R&D expenses incurred by these producers to develop new technologies, 
new products and new techniques, are subject, under certain conditions, to an additional 
100% or 200% deduction, on top of the deduction of actual expenses.   

(40)  The  Commission  has  also  identified  a  non-exhaustive  list  of  government  support 
programs  through  which  municipal  and  provincial  governments67  provide  subsidies  to 
medical  device  manufacturers  to  encourage  the  development  and  manufacturing  of 
products  within  their  jurisdictions,  including  medical  devices  subject  to  volume-based 
procurement.   

(41)  Beijing  offers  subsidies  to  the  medical  device  industry  in  various  forms  through  the 
‘Administrative  Measures  for  the  Beijing  High-end  Industries  Development  Fund’68. 
Moreover, the Beijing Economy and Technology Development  District (Zone) has put 
in  place  a  programme  supporting  the  manufacturing  and  R&D  activities  of  certain 

62   Medical instruments, equipment and medical specific software (i.e. medical imaging diagnostic technology; 
first aid and rehabilitation technology; new electrophysiological testing and surveillance technology; medical 
testing  technology  and  new  equipment;  new  software  for  medical  specialized  networks;  medical  detection 
and ray measurement testing technology). 

63   https://kj.quanzhou.gov.cn/wsbs/xgxz/201703/t20170322_431820.htm (last accessed on 15 October 2024) 

According  to  Article  93  of  the  Implementation  Rules  for  the  Enterprise  Income  Tax  Law  (Implementing 
Regulations of the Enterprise Income Tax Law of the People's Republic of China (Revised in 2019)  - Order 
of the State Council of the People's Republic of China No. 714 ) read together with Circular of the Ministry 
of  Science  and Technology,  Ministry  of  Finance  and  the  State Administration  of Taxation  on  revising  and 
issuing Administrative Measures for the Recognition of High-Tech Enterprises (No. 32 of 2016); Circular of 
the Ministry of Science and Technology, the Ministry of Finance and the State Administration of Taxation on 
Revising and Issuing the Guidelines for the Administration of Accreditation of High-tech Enterprises, (No. 
195 of 2016) and Announcement of the State Administration of Taxation on the Application of Preferential 
Income Tax Policies to High-tech Enterprises (Announcement No. 24 of 2017) 

64   Considered high and new technology enterprises’ (‘HNTE’) 
65   Order No 23 of the President of the People’s Republic of China   
66   As well as Announcement of the State Administration of Taxation on Issues concerning the Attribution Scope 
of the Weighted Pre-tax Deduction of R&D Expenses (Announcement No 40 of 2017) and Announcement of 
the Ministry of Finance and State Administration of Taxation on Further Improving the Policies Regarding 
Weighted Pre-tax Deduction of R&D Expenses (Announcement No 7 of 2023) 

67   Beijing, Shanghai, Shenzhen, Guangzhou, and Suzhou are the Chinese cities with the largest medical device 

industries – see in this respect https://www.thepaper.cn/newsDetail_forward_26681704  

68   ‘Notice of the Beijing Municipal Bureau of Economy and Information Technology and the Beijing Municipal 
Bureau  of  Finance  on  Printing  and  Distributing  the  Measures  for  the  Management  of  Funds  for  the 
Development  of  High-tech  Industries 
in  Beijing‘  Jingjing  Xinfa  [2021]  No.  84,  available  at: 
https://www.beijing.gov.cn/zhengce/zhengcefagui/202109/t20210925_2501587.html (accessed on 29 October 
2024).  The  2022,  2023,  and  2024  Implementation  Guidelines  for  the  Beijing  High-end  Industries 
for  various  medical  device  projects,  available  at: 
Development  Fund  each  offer  grants 
https://www.beijing.gov.cn/fuwu/lqfw/gggs/202202/t20220208_2606216.html,  
https://www.beijing.gov.cn/zhengce/zhengcefagui/202302/t20230227_2924581.html 
https://jxj.beijing.gov.cn/jxdt/tzgg/202401/t20240119_3541288.html (accessed on 29 October 2024).  

and 

13 

 
 
 
 
 
 
 
 
 
 
medical  devices  in  the  zone69.  This  programme  also  specifically  supports  the 
manufacturing  of  products  subject  to  centralised  volume-based  procurement  - 
enterprises  are  encouraged  to  participate  in  the  centralized  procurement  of  medical 
devices in the State and Beijing, and can receive a refund of the total bid price for such 
products that have been manufactured  for the first time in the zone, with a maximum 
refund for a single variety of up to 3 million CNY. Finally, the Zhongguancun National 
Independent  Innovation  Demonstration  Zone  and  some  Beijing  districts  have  issued 
support  programs  for  the  medical  devices  industry  to  provide  grants  supporting  the 
development of advanced industries, including medical devices innovation.  

(42)  The  General  Office  of  the  Shanghai  Municipal  People's  Government  has  also  put  in 
place  several  programs70  to  provide  financial  support  to  medical  devices  companies 
located  in  Shanghai  in  the  form  of  grants,  loan  interest  subsidised,  refund  on  R&D 
expenses  etc.  In  addition,  the  China  (Shanghai)  Free  Trade  Zone  Lingang  New Area 
issued Several Measures on the Cluster Development of the Biomedical Industry71 that 
provides a variety of cash grants to the medical device industry.  

(43)  The  Shenzhen  Development  and  Reform  Commission  on  the  Issuance  of  Several 
Measures to Promote the High-Quality Development of Biomedical Industry Clusters in 
Shenzhen Municipality, Shen Fa Gai Gui [2022] No. 1072 contains measures providing 
financial  support  to  enterprises  engaged  in  production  and  R&D  activities  in  the 

Industry’, 

69   The programme is established through two documents called ‘Several Measures on Promoting High-Quality 
[  
Development  of  Pharmaceutical  and  Health 
[https://www.ncsti.gov.cn/zcfg/zcwj/202303/t20230301_109733.html  (accessed  on  28  October  2024)]  and 
‘Several Measures for Promoting the High-quality Development of the Intelligent Manufacturing Industry for 
High-end Medical Equipment’  
 [https://kfqgw.beijing.gov.cn/zwgkkfq/2024zcwj/202405/t20240510_3670133.html (accessed on 29 October 
2024)].  The  support  measures  concern  the  following  medical  devices:  medical  imaging  equipment, 
implantable  interventional  instruments  and  consumables,  genetic  testing  and  synthesis  equipment,  surgical 
treatment and life support equipment and other instruments and equipment, in vitro diagnostic reagents and 
products, biomedical materials, surgical robots, intelligent software and other medical devices. 

Jingji  Guan  Fa 

[2023]  No.  5 

70   ‘Opinions  on  Promoting  the  High-Quality  Development  of  the  City's  Biomedical  Industry’,  available  at 
https://www.shanghai.gov.cn/2021hfbgwg/20210519/2d51b319d0af457dab381045d8cd4b02.html  (accessed 
on  28  October  2024);  ‘Several  Measures  on  Promoting  the  Development  of  the  High-end  Manufacturing 
Industry’, available at: 

     https://www.ssme.sh.gov.cn/public/news!loadNewsDetail.do?id=2c91c28d83647d700183c5a963422229 

Chain’, 

Industry 

available 

(accessed  on  29  October  2024);  ‘Several  Opinions  on  Supporting  the  Innovation  and  Development  of  the 
Biomedical 
at: 
https://service.shanghai.gov.cn/XingZhengWenDangKuJyh/XZGFDetails.aspx?docid=240912111721j3leum
MZXJEiChWtVv5 (accessed on 29 October 2024); ‘Several Policy Measures to Accelerate the Creation of a 
Global  Hub 
for  Biomedical  R&D,  Economic  Development  and  Industrialization’,  available  at: 
https://www.ssme.sh.gov.cn/public/news!loadNewsDetail.do?id=2c91c28d848a2c89018498e17ec604ab 
(accessed on 29 October 2024); ‘Several Policies on Promoting the Development of Shanghai’s Biomedical 
Industry’, 
at: 
https://www.lexiscn.com/law/content.php?provider_id=1&isEnglish=N&origin_id=1373930&eng=0&keywo
rd=5Yy755aX5Zmo5qKwLOacgOmrmCzlhYM%3D&t_kw=&prid=7e9aa2d5-a3a0-4307-b3f3-
9ff23d940fa7&crid=ae1443e3-d67c-4405-a393-f3dd55203317  (accessed  on  29  October  2024)  and  ‘Several 
Policies  on  Promoting  the  Development  of  Shanghai’s  Biomedical  Industry  (2014  Version)’,  available  at: 
https://www.shanghai.gov.cn/nw31831/20200820/0001-31831_40018.html (accessed on 29 October 2024) 
71   Available at: https://www.lingang.gov.cn/html/website/lg/index/government/file/1819074381640433666.html  

available 

(accessed on 29 October 2024) 

72   https://www.sz.gov.cn/zfgb/2023/gb1273/content/post_10403843.html (accessed on 28 October 2024) 

14 

 
 
 
 
 
 
 
 
 
municipality  to  promote  the  development  of  high-end  medical  devices  industry 
clusters73.  The  programme  also  encourages  local  enterprises  to  participate  in  the 
national centralised volume-based procurement by subsidising winning medical devices 
with a grant with a maximum funding for each individual class of medical devices up to 
3 million CNY and for single enterprises up to 5 million CNY annually. Other programs 
also  support  the  development  of  core  technologies  for  the  medical  devices  sector  and 
provide subsidies in the form of refunds of R&D and investment costs74. 

(44)  In  Guangdong  province,  the  Several  Policies  and  Measures  to  Promote  the  High-
Quality Development of the Biomedical Industry in Guangzhou, Sui Fu Ban Gui [2024] 
No 175 provide various cash grants76 to companies producing and developing innovative 
high-end  medical  devices.  Furthermore,  the  Several  Measures  to  Promote  the 
Development  of  Biomedical  Innovation  [2020]  No.  8677  also  provide  cash  grants  and 
other forms of support to the medical devices industry. 

(45)  Shandong Province has issued an Action Plan for Leading Innovative Drugs and High-
end  Medical  Devices  (2020-2022)  Lu  Ke  Zi  [2020]  No.  3378  to  support  the  medical 
devices industry in the province. The city of Qingdao provides additional support, such 
as  grants  for  local  production,  refund  of  R&D  expenses  and  subsidies  on  investment 
costs79.  

73   The measures support high-end medical imaging, in vitro diagnosis, life monitoring and life support, high-
end  implant  intervention,  emergency  treatment,  tumor  radiotherapy,  medical  endoscopy,  genetic  testing, 
optical  equipment,  DNA  synthesizer,  intelligent  rehabilitation  aids  and  health  management  and  other 
instruments and equipment, various reagents and products required for disease screening and precision drug 
analysis,  high-end  implantable  interventional  products  such  as  stent  valves,  ventricular  assist  devices, 
intraocular  lenses,  orthopaedic  devices,  degradable  materials,  tissue  and  organ  induction  regeneration  and 
repair  materials,  new  oral  materials,  biomedical  materials  such  as  high-value  domestic  replacement 
consumables,  surgical  robots,  intelligent  software  and  other  artificial  intelligence  information  technology 
applications  in  medical  equipment  scenarios,  etc.  in  the  form  of  40  %  refund  of  the  actual  investment  in 
research  and  development,  with  a  maximum  of  between  3  and  5  million  CNY  for  the  first  approval  of 
specific  medical  devices  produced  locally,  and  up  to  10  million  CNY  for  newly  built  or  renovated 
manufacturing plants. High-end medical devices, approved and sold in the US, Japan and the EU can receive 
up  to  10  million  CNY  for  a  single  enterprise  per  year  if  they  conduct  research  and  development  and 
industrialisation locally. 

Research 

Technology 

74   The ‘Notice on Organizing and Implementing a Special Support Plan for Major Public Service Platforms and 
Industry’: 
in 
Core 
https://www.samd.org.cn/home/newsDetail?id=2884&typeId=440  (accessed  on  29  October  2024)  and 
‘Several Measures to Promote the Cluster Development of the Biomedical Industry in Shenzhen’. 
75   https://www.gz.gov.cn/zwgk/fggw/sfbgtwj/content/post_9451070.html (accessed on 28 October 2024) 
76   “The  city  and  district  will  jointly  give  talent  rewards,  R&D  and  industrialization  incentives,  investment 
shares, discount loans and other full-chain support, with a maximum support amount of 5 billion yuan and a 
support period of up to 5 years”.   

Biomedical 

the 

77   https://gdii.gd.gov.cn/gkmlpt/content/2/2967/post_2967541.html#2891 (accessed on 29 October 2024) 
78   http://kjt.shandong.gov.cn/art/2020/5/22/art_103585_9129786.html (accessed on 30 October 2024) 
79   Several Policies on Further Supporting the High-quality Development of the Biomedical Industry of Qingdao 
[2023] 
at: 
12, 
http://www.qingdao.gov.cn/zwgk/zdgk/fgwj/zcwj/szfgw/202312/t20231208_7705269.shtml  (accessed on 30 
October 2024); Detailed Implementation Rules on Several Policies for Further Supporting the High-quality 
at 
Development 
http://www.qingdao.gov.cn/zwgk/xxgk/gyxx/gkml/gwfg_533/202403/t20240315_7911768.shtml 
(accessed 
on  30  October  2024);  and  Several  Policies  on  the  Development  of  the  Qingdao  Biomedicine  and  Medical 
at: 
Device 

the  Biomedical 

of  Qingdao, 

[2024]  No. 

available 

available 

available 

Industry 

Industry 

[2023] 

Park 

No. 

No. 

14, 

17, 

of 

15 

 
 
 
 
 
 
 
 
 
 
(46)  The  Commission  found  that  one  of  the  major  Chinese  manufacturers  of  medical 
devices, Jiangsu Yuyue Medical Equipment & Supply Co., Ltd, has received a range of 
subsidies  through  various  support  programs  in  Jiangsu  province80.  In  particular,  the 
Implementation  Measures for  Promoting the Development  of  the Medical Devices and 
Biomedical Industry81 provide financial support for the manufacturing and development 
of medical devices in the Suzhou National High-Tech Industrial Development Zone.  

(47)  The Commission  also  identified the  following subsidy programs  in  other  provinces of 
the PRC: Notice of the General Office of Chongqing Municipal People's Government on 
Triggering Several Measures to Accelerate the Development of Biomedical Industry in 
Chongqing Municipality, Yu Fu Ban [2022] No. 1282; Industrial policy for high-quality 
development  of  biomedicine  in  the  Tianjin  Economic  and  Technological  Development 

http://www.qingdao.gov.cn/zwgk/xxgk/gyxx/gkml/gwfg_533/202403/t20240315_7911768.shtml 
on 30 October 2024) 

(accessed 

80 

(Trial), 

available 

http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900004462&stockCode=002223&anno
uncementId=1216658782&announcementTime=2023-04-28 (accessed on 30 October 2024)  
2018 Zhenjiang Science and Technology Innovation Fund (Major Science and Technology Special Project), 
the Annual Allocations  for  the  2017  and  2018  Municipal  Major  Science  and  Technology  Special  Projects, 
Filing  of  the  Medical  Ventilator  Mechanical  Products  Construction  Project  of  Yuwell  Medical  Equipment 
Co., Ltd, 2020 Central Government Subsidy for the Construction of an Emergency Material Support System, 
Measures  for  the  Administration  of  Special  Funds  for  the  Transformation  of  Scientific  and  Technological 
Achievements 
at  https://jsstyj.jiangsu.gov.cn/art/2020/6/5/art_78433_9198419.html 
(accessed on 30 October 2024); Measures for the Administration of Special Funds to Transform and Upgrade 
the  Industrial  and  Information  Technology  Industries  Su  Cai  Gui  [2020]  No.  29,  available  at: 
https://www.js.gov.cn/art/2020/12/22/art_64797_9611822.html  (accessed  on  30  October  2024)  -  in  this 
respect  see  also  the  Announcement  on  the  Third  Batch  of  2021  Projects  of  the  Special  Funds  for 
Transformation 
(2021) 
Industrial 
https://gxt.jiangsu.gov.cn/art/2021/11/22/art_6281_10121293.html (accessed on 30 October 2024) which lists 
Jiangsu Yuwell’s Intelligent Manufacturing Demonstration Factory Project for High-end Medical Equipment 
in  the  third  batch  supported  by  this  fund  –  and  Measures  on  the  Administration  of  Special  Funds  for  the 
Development  of  Strategic  Emerging 
[2022]  No.  10,  available  at 
https://czt.jiangsu.gov.cn/art/2022/12/30/art_77684_10716017.html  (accessed  on  30  October  2024)  -  in  this 
respect,  see  also  Jiangsu  Development  &  Reform  Commission.  (2022). Announcement  on  2022  Projects  of 
Provincial  Special  Funds 
the  Development  of  Strategic  Emerging  Industries,  available  at:  
https://fzggw.jiangsu.gov.cn/art/2022/6/16/art_284_10495496.html listing Jiangsu Yuyue Medical Equipment 
Co., Ltd. high-performance diagnosis and treatment equipment project for respiratory critical diseases as one 
of the projects supported by this fund.  

Industries  Su  Cai  Gui 

Information 

Upgrading 

Industry. 

and 

and 

for 

of 

81   http://kcb.ideatob.com/pc/sadmin/upload/2020-06-01/202006012140233966.pdf  (accessed  on  30  October 

2024) 

82   The program aims at financially supporting the industrialization and R&D of innovative medical devices, the 
development  of  overseas  markets  and  the  construction  of  advanced  manufacturing  platforms  in  terms  of 
digital, 
at:  
available 
https://www.cq.gov.cn/zwgk/zfxxgkzl/fdzdgknr/zdmsxx/yl/zyzc/202203/t20220311_10496287.html 
(accessed on 28 October 2024) 

technologies, 

production 

intelligent 

green 

and 

16 

 
 
 
 
 
 
 
 
 
 
 
Zone83 and Several  Measures  to  Promote the High-Quality Development  of  Dongguan 
Songshan Lake Biomedical Industry84. 

(48)  According to a report published by the Mercator Institute for China Studies (‘MERICS’) 
in  November  2023  titled  ’Investigating  State  support  for  China’s  medical  technology 
companies’85, a sample of 122 Chinese companies manufacturing medical devices have 
seen  their  government  support86  increase  five-fold  between  2017  and  2022  [from  5 
billion CNY to 20 - 27 billion CNY (655 million EUR to 2,8 – 3,8 billion EUR)]87. In 
addition,  medical  technology  received  about  10  %  of  all  public  spending  on  research 
and development  (40 billion CNY, or 5,6 billion EUR) in  2022. This report also  finds 
that Chinese companies manufacturing medical devices receive more subsidies relative 
to their size than those active in other sectors (subsidies as a share of revenue)  88. The 
report  finally  shows  that  the  tax  benefits  for  the  122  companies  in  the  sample  have 
increased  six-fold  between  2017  and  2022  and  reached  11,4  billion  CNY  (1,6  billion 
EUR),  representing  an  average  benefit  of  93,8  million  CNY  [13,3  million  EUR]  per 
company, which is worth 2,6 % of their average revenue89.  

(49)  Based  on  their  publicly  available  annual  reports,  seven  of  the  largest  Chinese 
manufacturers of medical  devices90 have received  approximately 2 billion CNY direct 
grants for the years 2022 and 2023, and approximately 1,3 billion CNY in the form of 
VAT refunds for the sale of software. All these companies have enjoyed the preferential 
EIT rate of 15%  and the additional  deduction of  R&D expenses, which resulted in  an 
estimated  combined  amount  of  11,5  billion  CNY  EIT  savings  and  an  estimated  R&D 
savings of approximately 240 - 400 million CNY for the two years.  

2.3.  The application of the measures and practices  

2.3.1.  The application of the measures and practices related to the “Buy China” policy 

83   The Economic Development Zone actively encourages and supports the development of high-end innovative 
medical  devices  and  gives  up  to  15  million  CNY  of  financial  incentives  to  enterprises  that  have  obtained 
relevant  qualifications  or  industrialisation,  available  at:  https://www.teda.gov.cn/contents/13/24313.html 
(accessed on 28 October 2024) 

84  This  program  provides  for  a  maximum  subsidy  between  1  million  CNY  and  3,2  million  CNY  for  the 
registration  of  specific  medical  devices,  with  additional  500,000  CNY  for  innovative  medical  devices, 
available  at:  http://www.imd-cfda.com/ueditor/php/upload/file/20211220/1639985477974932.pdf  (accessed 
on 30 October 2024) 

85   Available at https://merics.org/en/report/investigating-state-support-chinas-medical-technology-companies 
86   Including direct subsidies, tax benefits, below-market borrowing and below-market equity 
87   See on pages 24 and 25. 
88   See  page  27  of  the  report.  As  a  result,  State  support  directed  to  China’s  medical  devices  companies  was 
estimated at around 28% of their net profit, or 77% of their R&D expenses. This is consistent with the OECD 
findings  that  the  PCR  provides  significantly  more  state  support  than  other  advanced  economies,  with  data 
between 2005 and 2019 showing the same forms of support amounted to approximately 4.45% of revenue for 
firms in China on average in 13 sectors, compared to just 0.69% of revenue for firms in OECD countries. 

89   See on page 28. 
90   Namely  Qingdao  Haier  Biomedical  Co.,  Ltd.,  Lepu  (Beijing)  Medical  Instruments  Co.,  Ltd.,  Shenzhen 
Mindray Bio-Medical Electronics Co., Ltd., Shandong Shinva Medical Instrument Co., Ltd., Shanghai United 
Imaging Healthcare Co., Ltd., Beijing Wandong Medical Technology Co., Ltd. and Jiangsu Yuwell Medical 
Equipment & Supply Co., Ltd. 

17 

 
 
 
 
 
 
 
 
 
 
 
 
(50)  The  Commission  investigated  the  actual  procurement  practices  for  medical  devices 
prevalent  in  the  PRC  in  available  procurement  portals.91  The  investigation  was 
hampered by the fact that the PRC does not publish systematically online the essential 
documents  needed  to  understand  the  eligibility  of  foreign  bidders  and  the  tender 
requirements, particularly for those conducted at subcentral level. It is also worth noting 
in this respect that a recent empirical study found that the overall level of transparency 
in public procurement in China is well below the one found in the European Union. The 
study  used  a  procurement-specific  transparency  index  (with  values  between  0  and  1, 
where 0 is “completely opaque” and 1 “fully transparent”) and estimated that the PRC 
scored only 0.6, well below the scores achieved in the EU Member States, all ranking 
above 0.9.92  

(51)  The Commission managed to accede publicly available information for a set of over 380 
000 procurement tenders  on medical  devices  conducted between January 2017  and  31 
May 2024. However, publicly available information about tender procedures in the PRC 
has  proved  to  be  limited  and  spread  among  multiple  sources  and  not  all  published 
tenders  contain  the  necessary  minimum  information.  In  particular,  the  Commission 
found that only 35 504 of these tenders contained the minimum documents that allow to 
determine  the  eligibility  criteria  and  other  conditions  of  participation  for  prospective 
bidders that could be usefully examined for the purpose of the investigation (hereinafter 
‘the first sample’).  

(52)  The  analysis  of  the  tender  documents  contained  in  this  first  sample  allowed  the 
Commission  to  examine  (i)  the  nature  of  the  tender  requirements  which  restrict  the 
procurement  of  imported  medical  devices  and  (ii)  their  prevalence  across  product 
categories and the Chinese territory. 

(53)  The analysis of the first sample shows a systematic use of various restrictions. Explicit 
restrictions include explicit prohibitions of the procurement of imported medical devices 
and other requirements that de facto impair the access to such procurement for foreign 
economic  operators  and  goods  and  create  a  significant  competitive  disadvantage  for 
imported medical devices, e.g. the requirement to produce in China, or to use Chinese 

91 

http://www.ccgp-beijing.gov.cn/; 

https://search.ccgp.gov.cn/bxsearch; 

http://tjgpc.zwfwb.tj.gov.cn/web_index1.do; 
http://www.ccgp-yunnan.gov.cn/; 

https://www.zfcg.sh.gov.cn/; 
https://gdgpo.czt.gd.gov.cn/; http://zfcg.szggzy.com:8081/; http://www.ccgp-henan.gov.cn/; http://www.ccgp-
http://www.ccgp-jiangsu.gov.cn/; 
hebei.gov.cn/; 
https://zfcg.czt.zj.gov.cn/; 
http://www.ccgp-sichuan.gov.cn/; 
http://www.ccgp-chongqing.gov.cn/; https://www.ccgp-anhui.com.cn/default; http://www.ccgp-fujian.gov.cn/; 
http://jycg.hubei.gov.cn/; http://www.ccgp-hunan.gov.cn/; http://www.ccgp-jiangxi.gov.cn/; http://www.ccgp-
xinjiang.gov.cn/;  http://www.ccgp-xizang.gov.cn/;  http://www.ccgp-guangxi.gov.cn/;  http://www.ccgp-
guizhou.gov.cn/; 
http://www.ccgp-
liaoning.gov.cn/portalindex;  https://www.ccgp-hainan.gov.cn/zhuzhan/;  http://www.ccgp-neimenggu.gov.cn/; 
https://www.ccgp-shaanxi.gov.cn/; 
http://www.ccgp-shandong.gov.cn/; 
http://www.ccgp-shanxi.gov.cn/; 
https://www.ccgp-gansu.gov.cn/;  https://www.ccgp-ningxia.gov.cn/public/NXGPP NEW/dynamic/index.jsp  
92   Sangeeta Khorana, Santiago Caram, Nripendra P. Rana, “Measuring public procurement transparency with an 
index: Exploring the role of e-GP systems and institutions”, Government Information Quarterly, Volume 41, 
Issue 3, 2024 (https://www.sciencedirect.com/science/article/pii/S0740624X24000443). 

http://www.ccgp-heilongj.gov.cn/; 

http://www.ccgp-jilin.gov.cn/; 

18 

 
 
 
 
 
 
 
 
 
 
 
 
materials and components, the requirement to transfer technology to Chinese companies 
or  to  achieve  some  degree  of  domestic  performance  in  terms  of  sales,  investment,  or 
research  and  development  activities).  Implicit  restrictions  include  cases  where  the 
tenders  do  not  contain  explicit  prohibition  of  imported  medical  devices  or  other 
discriminatory  requirements,  but  de  facto  lead  to  the  exclusion  of  imported  medical 
devices. They follow from the application of Notice No 248, which provides that where 
the tender documents do not clearly specify that imported medical devices are allowed, 
it  shall  be  deemed  that  they  are  not  allowed93  and  thus  prohibited  to  be  procured. 
Therefore,  the  absence  of  explicit  prohibition  of  imported  medical  devices  or  other 
discriminatory  requirements  cannot  be  interpreted  as  an  indication  that  imported 
medical devices are allowed to participate in the tenders concerned. 

(54)  Overall,  the  Commission  found  that  87%  of  public  procurement  tenders  of  the  first 
sample contained explicit or implicit restrictions affecting the procurement of imported 
medical devices (see Figure 1).  

(55)  In  addition,  it  is  important  to  underline  that  the  fact  that  the  purchase  of  imported 
medical devices is allowed in a tender procedure and that the relevant documents do not 
contain  explicit  discriminatory  requirements  does  not  necessarily  mean  that  imported 
medical  devices  are  not  subject  to  discrimination.  In  fact,  discrimination  affects  the 
procurement of imported medical devices even if such procurement is approved, to the 
extent that Article 5 of the Administrative Measures instructs procuring entities to “give 
priority to purchasing products that transfer technology (…), provide training services 
and other compensation trade measures”.  

Figure 1. Access to the public procurement markets of medical devices in PRC 

products 

domestic 

products", 

93   See  some  examples  in  this  respect:  ‘Competitive  negotiation  of  medical  equipment  procurement  project  of 
Qixian  People's  Hospital  in  Shanxi  Province’,  point  6  "If  the  above  content  is  not  specifically  marked  as 
at 
"imported 
http://www.ccgp.gov.cn/cggg/dfgg/jzxcs/202205/t20220530_17988891.htm  (accessed  on  29  October  2024); 
’The  First  People's  Hospital  of  Jinzhong  City  anesthesia  breathing  circuit  disinfection  system  and  other 
medical equipment purchase projects public bidding announcement’, ”If the words "imported products" are 
not  specifically  marked  in  the  above  table,  domestic  products  must  be  purchased”,  available  at: 
http://www.ccgp.gov.cn/cggg/dfgg/gkzb/202304/t20230417_19718341.htm  (accessed  on  29  October  2024); 
’Public  bidding  announcement  for  the  purchase  of  medical  equipment  in  Fenyang  Hospital  of  Traditional 
Chinese Medicine’ Note: 1. ”All bidding contents are purchased from domestic products unless specifically 
marked as "imported products", available at: 

purchased”, 

available 

must 

be 

      http://www.ccgp.gov.cn/cggg/dfgg/gkzb/202403/t20240308_21611160.htm    (accessed  on  29  October  2024) 
and  ’Heilongjiang Neng'an Technology Co., Ltd., Suihua Maternal and Child Health Hospital Procurement 
of  Financial  and  Medical  Electronic  Bill  Project  Transaction  Announcement‘, 
  available  at: 
https://www.ccgp.gov.cn/cggg/dfgg/cjgg/202307/t20230728_20394036.htm  (accessed  on  28  October  2024) 
Point  26.  ’Purchasing  policy’  specifies  that  “Procurement  shall  be  of  domestic  goods;  if  goods  cannot  be 
obtained  domestically  or  not  on  reasonable  commercial  terms,  imported  products  may  be  procured  after 
approval  in  accordance  with  the  prescribed  procedures  (in  the  absence  of  special  requirements  in  the 
announcement or documents, domestic goods are to be procured).” 

19 

 
 
 
 
 
 
 
 
 
 
 
Source: Commission finding, based on tender information publicly available from Chinese public procurement 
portals.  

(56)  The  examination  of  the  sample  also  clearly  indicates  that  the  inclusion  of  explicit 
prohibition of imported medical devices  or other discriminatory requirements is found 
for  all  product  categories  identified  in  the  Notice  of  Initiation  in  a  systemic  and 
recurrent manner. However, they are particularly prevalent in tenders concerning certain 
categories  of  medical  devices.  Figure  2  shows  a  selection  of  such  medical  device 
categories  and  the  share  of  tenders  in  the  sample  subject  to  explicit  prohibitive  or 
discriminatory requirements. 

Figure  2.  Types  of  medical  devices  mainly  affected  by  Chinese  prohibitive  or 
discriminatory requirements 

(based on the total number of tenders publicly available) 

20 

 
 
 
 
 
 
 
 
 
 
 
 
Source: Based on tender information publicly available from Chinese public procurement portals. 

(57)  In  addition  to  the  systemic  and  recurrent  nature  of  prohibitive  or  discriminatory 
requirements  across  all  medical  devices  categories,  the  sample  also  indicates  a  very 
widespread  application  of  such  requirements  across  all  Chinese  provinces,  except  the 
autonomous  province  of  Tibet.  Figure  3  offers  a  snapshot  of  the  widespread 
geographical nature of these requirements found  in tenders of the sample organised in 
more than 300 cities across the Chinese territory.   

Figure 3. Geographical incidence of explicit prohibitive or discriminatory requirements affecting 
medical devices in China 

Source: Based on tender information publicly available from Chinese public procurement portals. 

(58)  In  addition,  the  Commission  conducted  an  in-depth  examination  of  a  second  separate 
sample of publicly  available tenders for the years 2022, 2023 and half-2024,  focusing 
only on tenders with explicit discriminatory requirements concerning imported medical 
devices. The Commission found explicit  prohibitions of purchase of imported medical 
devices  in  36  %  of  the  discriminatory  tenders  concerned  in  2022,  which  decreased  to 
43 % in 2023 and 53 % in the first half of 2024. This indicates a sustained increase of 
the explicit prohibition of imported medical devices among the tenders at stake.     

(59)  With respect to Document 551, a study by L.E.K. Consulting ‘Hospital Priorities 2023 
China  Edition:  Strategic  Implications  for  Medtech  Companies’94  completed  in August 
2023  shows  that  public  hospitals  in  the  PRC  have  already  largely  implemented  the 
targets laid down in Document 551, as explained in recital (28),  and are committed to 
further implement them, even beyond the products listed therein. In fact, while in 2022 

94   https://www.lek.com/sites/default/files/PDFs/china-hospital-priorities-2023-medtech.pdf    

21 

 
 
 
 
 
 
 
  
 
 
 
only 16 % of the respondent public hospitals stated that they had already implemented 
Document 551, this percentage increased to 60 % in 2023. In 2023, 33 % of respondent 
public hospitals declared that they will implement Document 551 in the next six months 
and only 6 % stated that they will do so beyond the next six months. In 2023, 35 % of 
the respondent public hospitals declared that they would implement Document 551 on 
both  the  medical  devices  on  the  list  and  those  beyond  the  list,  compared  to  13  %  in 
2022.  Finally,  the  study  shows  that  the  proportion  of  hospitals  restricting  the  use  of 
imported medical devices has increased 13-fold since Document 551 has been released. 
In  this  respect,  the  proportion  of  the  response  “no  restrictions  on  the  use  of  imported 
products” decreased from 36 % in 2020 to 11 % in 2023.  

(60)  The  Commission  also  found  tenders  in  which  medical  devices  listed  the  Catalogue  of 
the  China  Medical  Equipment  Association  were  awarded  additional  points  during  the 
bid evaluation process95 or where the technical specifications require that products are 
listed in that Catalogue.96 

2.3.2.  The application of volume-based procurement  

(61)  Up  to  the  end  of  the  investigation  period,  the  Commission  found  that  the  PRC  has 
organised  national  volume-based  procurement  for  five  categories  of  high-end  medical 
consumables:  coronary  stents,  artificial  joints,  interocular  lens  and  sports  medicine 
medical  consumables,  orthopaedic  spine  consumables  and  cochlear  implants  and 
peripheral  vascular  stents.  In  addition,  the  Commission  found  that  volume-based 
procurement  tenders  were  also  conducted  at  provincial  level  for  various  medical 
consumables such as pacemakers, balloon dilatation catheters, trauma fixation products, 
artificial  joins,  coronary  stents,  artificial  bones,  orthopaedic  consumables  etc.97.  The 
PRC is planning to expand the use of volume-based procurement to other categories of 
medical devices in the near future.   

95   See in this respect: https://www.ccgp.gov.cn/cggg/dfgg/gzgg/202208/t20220817_18477897.htm (accessed on 
4  November  2024)  -  if  the  procured  goods  are  selected  in  the  Catalogue  of  Excellent  Domestic  Medical 
Equipment Products, 2 points are awarded upon presentation of a copy of the certificate issued by the China 
Medical Equipment Association, and 
https://www.ccgp.gov.cn/cggg/dfgg/gzgg/202112/t20211229_17462399.htm (accessed on 4 November 2024) 
- if the procured products are shortlisted for the Excellent Domestic Medical Equipment Product Catalogue 
issued  by  the  China  Medical  Equipment Association  in  2019,  1  point  is  awarded.  It  should  be  noted  that 
evaluation criteria and scoring information are not always included in public procurement announcements.  
96   See in this respect: https://www.ccgp.gov.cn/cggg/dfgg/gkzb/202210/t20221010_18788060.htm (accessed on 
4 November 2024) - one of the specification requirements for anaesthesia machine is “Certification: Passed 
CFDA  and  CE  certification,  and  was  selected  in  the  Excellent  Domestic  Medical  Equipment  Product 
https://www.ccgp.gov.cn/cggg/dfgg/xjgg/202212/t20221215_19238161.htm 
Selection  Catalogue" 
(accessed on 4 November 2024)  – the product specifications for anaesthesia monitor contain the  following 
requirement:  “4.3  The  product  model  has  been  selected  into  the  excellent  domestic  medical  equipment 
product  catalogue”  (with  respect  to  this  product,  the  tender  announcement  also  specifies  that  the 
procurement of imported goods is not allowed) 

and 

97   e.g., in Anhui, Hubei, Shandong,  Shanxi, Fujian, Jiangsu, Qinghai, Shanghai, Zhejiang, Hunan, Henan, and 
cross-province  alliance:  Guangdong  7-povinces  alliance,  Guizhou-Chongqing-Hainan  Alliance,  Beijing-
Tianjin-Hubei Alliance and Inner Mongolia 8-provinces alliance, Henan 12 provinces alliance, Beijing 

22 

 
 
 
 
 
 
 
 
 
 
(62)  The Commission examined the publicly available documents and results of the national 
volume-base  procurement  procedures  for  coronary  stents,  artificial  joints,  interocular 
lens and sports medicine medical consumables, and orthopaedic spine consumables.  

(63)  In all these cases, the contracting authorities first announced the tenders98, subsequently 
published  the  procurement  documents99  and,  finally,  published  the  results100.  In  the 
tender  announcements,  medical  institutions  were  invited  to  declare  their  needs,  and 
interested  bidders  to  disclose  their  maximum  annual  supply  capacity  for  the  Chinese 
market.  Bidders  were  then  placed  in  two  bidding  groups,  named  “A  unit”  and  “B 
unit”101,  and  competition  took  place within each unit.  Bidders  in  each unit  could only 
offer  one  price  per  product  category.  The  announcements  specified  also  a  maximum 
number of finalists. The bidders were shortlisted based on price, from the lowest to the 
highest. According to the tender announcements, the bidding price of shortlisted bidders 
should not be higher than a so-called “highest effective declaration price” (which is a 
maximum  reference  or  ceiling  price  that  could  be  offered  by  bidders).  This  highest 
effective declaration price was then set in the subsequent procurement documents.  The 
final  selection  of  shortlisted  bidders  in  unit  A  required  that  the  “price  difference 
[between the selected bidders’ offered prices] is controlled within a reasonable range” 
within  the  same  product  category  and  between  different  product  categories  (as 
explained in  recitals  (64)  to  (66) below, the procurement documents require  that to  be 
selected a bidder should offer a price equal or inferior to a certain amount of times the 
lowest  bidding  price  received  for  the  same  product).  Bidders  in  unit  B  could  only  be 
selected  if  the  “price  difference  [between  the  selected  bidders’  offered  prices]  is 
controlled  within  a  reasonable  range”  and  the  bidding  price  was  not  higher  than the 
highest  winning  price  in  unit A.  Bidders  not  selected  under  these  rules  could  still  be 
selected in a second or third round, pursuant to other rules which were not explained in 
the announcement but in the procurement documents. However, the declared objective 
of this second selection  round was to  “promote the selection of  more  enterprises  with 
prices  lower  than  a  certain  level”.  The  procurement  documents  further  clarified  the 
above  elements  and  included  more  precise  information  about  the  price  selection 
mechanism and different procedural steps.   

(64)  As an illustration, in the first coronary stent volume-based tender organized in 2020, the 
procurement documents required a price to be selected equal or inferior to 1,8 times the 

98  See for instance: 
      https://hc.tjmpc.cn:10128/public/show14394.html; https://hc.tjmpc.cn:10128/public/show14416.html and 

https://hc.tjmpc.cn:10128/public/show14430.html.  

99   See  for instance,  Joint Procurement Office National Organization Coronary Stent Centralized Procurement 
https://hc.tjmpc.cn:10128/upload/202010/16/202010161537489949.pdf; 

Document 
National Organization of Artificial Joints Centralized Procurement Document (GH-HD20211):  

(GH-HD2020-1): 

      https://hc.tjmpc.cn:10128/upload/202108/23/202108231724279599.pdf;  and  National  Organization  of 
(GH-HD2022-1): 

Orthopaedic 
Procurement 
https://hc.tjmpc.cn:10128/upload/202209/07/202209072042181898.pdf.   

Consumables 

Centralized 

Document 

Spine 

100  See for instance, https://hc.tjmpc.cn:10128/public/show12356.html for coronary stents; and 

https://hc.tjmpc.cn:10128/public/show14378.html for artificial joints. 

101  Unit A includes only suppliers that can potentially supply the entire country or can cumulatively cover 85% 

of the total demand. Unit B includes the remaining bidders.  

23 

 
 
 
 
 
 
 
 
 
lowest bidding price received for the same product, or, if higher than 1,8 times, a price 
below 2 850 CNY (i.e. the “highest effective declaration price”). In the second coronary 
stent tender organized in 2022, the “highest effective declaration price” was even lower, 
set at 848 CNY. 

(65)  In  the  first  volume-based  tender  for  artificial  joints  organized  in  2021102,  the  “highest 
effective declared price”  was  as follows:  19 000 CNY for  a  ceramic hip  joint  product 
system, 18 000 CNY for a ceramic-polyethylene hip joint product system, 16 000 CNY 
for  an  alloy-polyethylene  hip  joint  product  system  and  19  000  CNY  for  a  knee  joint 
product system. The price of selected products had to be equal or inferior to 1,5 times 
the lowest bidding price for the same product, or, if higher than 1,5 times, a price below 
50 % of the “highest effective declaration price”.  

(66)  In the 2024 volume-based tender for artificial joints103, the “highest effective declared 
price” for each product system was lower even than in 2021: 7 588 CNY for a ceramic 
hip  joint  product  system,  6  761  CNY  for  a  ceramic-polyethylene  hip  joint  product 
system, 5 615 CNY for an alloy-polyethylene hip joint product system and 5 162 CNY 
for  a  knee  product  system.  According  to  the  procurement  document,  the  price  for 
selected products had to be equal or inferior to 1,2 times the lowest bidding price, or if 
higher than 1,2 times, below the “highest effective declared price”.  

(67)  Therefore,  the  volume-based  tenders  resulted  in  a  significant  price  decrease104.  The 
average  price  reduction  was,  up  to  95%  for  coronary  stents,  82  %  for  artificial  joints, 
84  %  for  orthopaedic  spine  consumables,  and  70  %  for  interocular  lens  and  sports 
medicine medical consumables.  

(68)  The Commission found information about some of the largest Chinese manufacturers of 
medical devices, which have received financial support as explained in recital (49), have 
won in volume-based tenders that have led to significant price decreases.  

(69)  In  2021,  Lepu  (Beijing)  Medical  Instruments  Co.,  Ltd.  won  a  bid  for  a  volume-based 
procurement  contract  in  Shanghai  for  providing  coronary  drug-eluting  balloons 
(‘DEBs’)105 Under the contract, it provided 244 DEBs at a cost of 11,497 CNY per unit, 

102 https://hc.tjmpc.cn:10128/upload/202108/23/202108231724279599.pdf  
103 

https://www.nhsa.gov.cn/module/download/downfile.jsp?classid=0&filename=b7cee42cfccc4c8a8a947ee489
1606a0.pdf  

104 https://veranex.com/2023/01/17/the-new-normal-for-market-access-in-china-volume-based-procurement/;       

http://www.qinghai.gov.cn/zwgk/system/2021/01/08/010373900.shtml; 
https://www.cmdi.org.cn/zx_4/xyzl/202101/t20210124_279695.html;   
http://ybj.gxzf.gov.cn/xwdt/bjdt/t7916501.shtml; 
https://www.stdaily.com/index/kejixinwen/202405/0dde2a7e253c45b78d9cad9472631cb1.shtml, and 
https://govt.chinadaily.com.cn/s/202405/31/WS6659a3b2498ed2d7b7eaef3f/centralized-procurement-of-
artificial-joints-boosts-healthcare-accessibility-in-china.html (accessed on 5 November 2024)  

105 Wall Street Knowledge. (2021).  ’Another product has been included in the centralized procurement!  Lepu's 
price  has been reduced by more  than 60%,  and it has won the bid. Will it be okay this time?‘, available at 
https://new.qq.com/rain/a/20210608A0BS9T00?web_channel=wap&openApp=false&suid=&media_id= 
(accessed on 30 October 2024)  

24 

 
 
 
 
 
 
 
 
 
 
 
a  discount  of  approximately  40  %  off  the  market  price  of  18,700  CNY  per  unit106.  In 
2020,  the  purchase  volume  of  Lepu’s  DEBs  in  Shanghai  was  zero107  and  under  a 
previous volume-based procurement contract in Guangdong, Lepu only provided seven 
DEBs108. 

(70)  In 2019, MicroPort Scientific Corporation won the bid for its PTCA balloon dilatation 
catheter  in  the  Jiangsu  Province  second  round  of  volume-based  procurement  for  three 
types  of  high-value  medical  consumables.109  According  to  the  article,  the  negotiations 
involved more than 300 models in three categories such as ophthalmic artificial crystals, 
blood  vessels  intervention  ball  sacs,  orthopaedic  artificial  hip  joints,  for  an  annual 
purchase amount is  about 1 billion CNY110. The average price reduction was 74,37 % 
(with  a  maximum  of  81,05  %)  for  vascular  intervention  balloons;  47,20  %  for 
orthopaedic  artificial  hip  joints  (with  a  maximum  of  76,70  %)  and  26,89  %  (with  a 
maximum of 38 %) for ophthalmic artificial crystals111. 

(71)  In  January  2024,  Shandong  Shinva  Medical  Instrument  Co.,  Ltd.  reported  that  it  had 
won the bid for all products in the centralized procurement of medical consumables for 
all products in the centralized procurement of haemodialysis medical consumables in 22 
provinces.112 

(72)  Finally, Jiangsu Yuwell Medical Equipment & Supply Co., Ltd. was among the winners 
in  the  2021  volume-based  procurement  of  two  types  of  medical  consumables: 
disposable  abdominal  puncture  devices  and  disposable  blood  glucose  test  strips  in 
Nanjing113.  The  negotiation  resulted  in  an  average  reduction  of  67,42  %  for  the  two 
types of medical consumables (with the highest decrease of 91,23 %). 

3.  Consultations with the GOC 

(73)  The Commission held consultations with representatives of the Ministry of Finance, the 
Ministry  of  Commerce,  the  Ministry  of  Science  and  Technology,  the  Ministry  of 
Industry and Information Technology, the National Healthcare Security Administration, 
the National Health Commission, and the National Medical Products Administration of 
the PRC. 

106 Id.  
107 Id.  
108 Id.  
109  Cailian.  (2019),  ’Jiangsu  Province  announced  the  results  of  the  centralized  procurement  of  three  types  of 
high-value medical consumables, with enterprises such as MicroPort and Aikang winning the bid’, available 
at:  https://m.jiemian.com/article/3557611.html (accessed on 30 October 2024).  

110 Id.  
111 Id.  
112 Jiemian News. (2024). Shinva: All products won the bid in the centralized volume-based procurement work 
of  the  inter-provincial  alliance  of  medical  consumables  for  hemodialysis  in  22  provinces,  available  at: 
https://www.jiemian.com/article/10727110.html (accessed on 30 October 2024) 

113  CN-Healthcare.  (2021).  ‘The  maximum  price  reduction  is  91.23%,  and  the  results  of  consumables 
negotiations  have  been  announced:  Abbott,  CR  Care,  Yuyue...‘,  available  at:  https://www.cn-
healthcare.com/articlewm/20210107/content-1178362.html (accessed on 30 October 2024) 

25 

 
 
 
 
 
 
 
 
 
 
 
 
the  Administrative  Measures  and 

(74)  During  these  consultations,  the  Commission  referred  to  the  alleged  measures  and 
practices, as identified in the Notice of Initiation and during the investigation and asked 
specific  questions  about  their  application  and  implementation  in  the  Chinese 
procurement market for medical devices. More specifically, the Commission asked for 
detailed information about the implementation, in this market, of the explicit preference 
for domestic products embedded in Article 10 of the GPL, and about the conditions for 
the authorisation of the procurement of imported medical devices, notably in accordance 
implementing  acts114.  The 
with 
Commission  also  asked  questions  about  the  specific  targets  for  the  share  of  domestic 
goods in the procurement of medical devices resulting from the MIC 2025, the ‘Made in 
China  2025  technology  roadmap  for  key  areas’,  and  the  Notice  on  Issuing  ‘Guiding 
Audit Standards for Government Procurement of Imported Products’. The Commission 
reviewed the various instruments by means of which the PRC supports the development 
of  the  Chinese  industrial  base  in  the  sector  of  medical  devices,  including  the  various 
calls for the use of public procurement procedures to favour115 and to foster the transfer 
of  technology  from  foreign  bidders  to  Chinese  industries  under  the  Administrative 
Measures’. Finally, the Commission asked questions about the functioning of the system 
of  volume-based  procurement  and  in  particular,  the  establishment  of  the  ‘reference 
price’ in such procedures.  

its  various 

(75)  The GOC did not contest the existence of these measures and practices and did not deny 
that  they  create  a  preference  in  public  procurement  procedures  for  medical  devices 
manufactured in the PRC and that they impose specific procedures for the procurement 
of  imported  medical  devices.  In  this  regard,  the  GOC  admitted  that,  under  its  ‘Buy 
China’ policy, only domestic products must be procured unless they are not available in 
China. With respect to the targets imposed in Document 551, the GOC claimed that this 
document  had  been  issued  to  counter  the  preference  of  many  Chinese  hospitals  for 
imported products, which put domestic medical devices at a disadvantage. Although the 
GOC did not deny the existence of the above discriminatory measures and provisions in 
the  Chinese  legal  framework,  it  claimed  they  were  not  implemented  in  practice  in  a 
discriminatory manner, in particular Articles 5 and 15 of the Administrative Measures, 
which  impose  technology  transfer  requirements,  and Article  18,  which  provides  for  a 
mandatory  clause  on  safeguarding  national  interests.  However,  the  GOC  could  not 
provide  a  convincing  explanation  why  such  measures  and  provisions  still  exist  in  the 
Chinese legal framework and are mentioned in recent tender documents.  

114  Including  the  ‘Notice  of  the  General  Office  of  the  Ministry  of  Finance  on  Issues  Concerning  the 
Administration  of  Government  Procurement  of  Imported  Products’  and  the  provincial  implementing  acts 
referred to in Section 3.3.1 above) 

115 Such as the ‘Notice on Deepening the Reform of the Medical and Health System’ or the ‘Guiding Opinions on 
Expanding  Investment  in  Strategic  Emerging  Industries  and  Cultivating  Strengthened  New  Growth  Points 
and Growth Poles’ 

26 

 
 
 
 
 
 
 
 
 
 
 
(76)  The  GOC  stressed,  instead,  that,  since  the  PRC  had  not  taken  any  international 
commitments  on  public  procurement,  the  alleged  measures  and  practices  were 
legitimate,  and  claimed  that  EU  companies  have  de  facto  access  to  the  Chinese 
procurement  market  for  medical  devices,  as  the  PRC  imports  a  significant  number  of 
medical  devices  (in  particular  high-end  products)  and  companies  owned  by  EU 
shareholders and established in the PRC ('foreign-invested companies’) can participate 
without  discrimination  with  respect  to  their  “domestic  products”  (which  need  to  be 
manufactured in the PRC).  

(77)  The GOC underlined in this respect that it is committed to eliminate any discriminatory 
measures  against  foreign-invested  companies  and  pledged  to  define  the  notion  of 
‘domestic product’ so that the foreign ownership of the foreign-invested companies does 
not  play  an  undue  role  in  the  appreciation  of  contracting  authorities  as  to  whether  a 
procured good is domestic or not.  However, it has not taken any corrective action nor 
specific commitments to this end. 

(78)  As for the system of volume-based procurement, the GOC explained that it had decided 
to organise this system for certain high-end medical consumables because their prices in 
the  Chinese  market  were  inflated  above  international  prices,  and  that  it  selected  the 
products  covered  based  on  the  need  for  big  volumes  and  the  existence  of  strong 
competition  with  many  large  producers.  It  claimed  that  no  domestic  preference  was 
applicable in  this system  (as price was  the only  criteria) and explained that  ‘reference 
prices’  were  based  on  historic  market  data,  without  providing  further  details.  When 
asked how companies could offer such low prices and remain profitable, the GOC stated 
that it is up to companies to decide whether to participate under such conditions.  

(79)  At  the  end  of  the  consultations,  the  Commission  and  the  GOC  explored  possible 
solutions to the Union concerns set out in the Notice of Initiation and explained by the 
Commission. The GOC claimed that the future accession of the PRC to the Government 
Procurement Agreement (‘GPA’) could solve such concerns and stressed that it was not 
in  a  position  to  open  the  procurement  market  of  the  PRC  unilaterally  outside  the 
framework of an international agreement on government procurement. 

(80)  On  30  August  2024,  the  GOC  sent  a  Note  Verbale  to  the  Commission  conveying  a 
request  to  terminate  the  investigation  and  to  negotiate  instead  a  comprehensive 
agreement aimed to open the government procurement market of both sides bilaterally. 
The Commission replied by Note verbale of 7 October 2024 and explained the reasons 
why  it  had  decided  to  continue  the  investigation.  The  Commission  recalled  that  the 
objective  of  the  investigation  is  not  the  negotiation  of  a  comprehensive  agreement  on 
government  procurement,  but  to  achieve  reciprocity  and  ensure  a  level  playing  field, 
which requires the elimination of the discriminatory barriers identified. 

27