(Yicai) April 25 -- China’s main business group in the European Union called on the bloc to use unilateral tools prudently and prioritize dialogue and consultation after the EU began looking into whether China favors local suppliers in its public procurement of medical devices.

The China Chamber of Commerce to the EU, which representing more than 1,000 firms, expressed deep disappointment today with the European Commission's decision to start a nine-month probe under the International Procurement Instrument.

The IPI is a mechanism designed to ensure reciprocity in access to public procurement markets between the EU and third countries. The EU announced the investigation, the first under the IPI, yesterday. It could result in higher trade tariffs on imports of Chinese medical equipment.

The chamber said the investigation should be based on comprehensive and objective facts. The EU may not have an adequate understanding of China's latest policies on ensuring equal participation in public procurement and actively promoting investment and cooperation in the medical field, it added.

China-Europe dialogue channels have always been open, the business group said, adding that there are numerous mechanisms between the two sides to properly address the concerns of European companies.

It is evident that China has been actively promoting fair competition in tenders and bidding as well as policies to attract foreign investment, the chamber said. As a result, many European businesses have benefited greatly from taking part in public procurement in China, it said.

The chamber said that the IPI, adopted in 2022, has had a strong bias since its inception. According to a survey of 180 Chinese companies and organizations in Europe that the business group conducted last year, 21 percent expressed concerns about the negative impact of IPI on their operations, it added.

Some Chinese firms have provided feedback on certain premium medical devices made in Europe that are not allowed to be exported to China for reasons such as dual civil and military use, the chamber said, adding that Chinese firms are asking the EU to relax the restrictions to promote bilateral economic and trade exchanges.

The China Chamber of Commerce to the EU was initiated by the European arms of Bank of China, China Three Gorges, and China Cosco Shipping. It was registered in Brussels, Belgium, in August 2018, and has over 100 members, representing more than 1,000 EU-based Chinese firms.

Editor: Emmi Laine