China hits back on EU curbs, clouding ties before summit

The move comes days ahead of Beijing meet

- 

China hit back at the European Union's restrictions on its medical device makers while maintaining key exceptions, adding uncertainty to ties ahead of a high-stakes summit later this month.

Beijing will exclude EU-based companies from Chinese government procurement for certain medical devices, but it will still allow products that are made in China, according to separate statements on Sunday. The move offers a relief for major European companies such as Siemens Healthineers AG and Royal Philips NV, which have increasingly localised their production.

"This looks more like a tit-for-tat move," said Henry Gao, a professor at Singapore Management University's Yong Pung How School of Law. He characterised the Chinese measure as a narrow response to the EU's earlier curbs on Chinese medical devices in public procurement.

Shares in Siemens Healthineers fell as much as 2.4% and Philips declined as much as 1.5% early yesterday, with analysts at Jefferies, including Julien Dormois, saying the firms are "minimally affected" due to their "strong local presence."