European medtech companies to face uphill battle to maintain market shares from China’s import restrictions: GlobalData

European medical device manufacturers are facing fresh pressure after China introduced new procurement limits on foreign-made equipment this month. The policy bars state hospitals and institutions from buying European devices in contracts exceeding 45 million yuan (roughly $6.3 million). This price range covers many of the most advanced tools used in hospitals. Medical giants such as Siemens Healthineers and Philips, whose high-end imaging and diagnostic devices are widely used in Chinese hospitals, now face an uphill battle to maintain their market shares, says GlobalData.

The move is part of a broader response to the European Union’s decision to block Chinese suppliers from participating in similar high-value public tenders. While framed as reciprocal, China’s action hits European firms at a time when many are already dealing with global supply chain disruptions and cost inflation.

Elia Garcia, Medical Analyst at GlobalData, comments, “One key detail is that the new restrictions do not apply to devices that are manufactured inside China. This creates a clear incentive for foreign companies to localise production in order to remain competitive.”

At the same time, local Chinese manufacturers are expected to benefit from this policy shift. Firms such as Mindray and United Imaging, which already offer competitive alternatives in several categories, are likely to see more demand from public sector clients. Their ability to fill the gap left by restricted imports could strengthen their position both domestically and in overseas markets where they are becoming more active.

Garcia concludes, “This latest development signals a deeper change in how international trade in medical technology is unfolding. What used to be a relatively open and globally integrated market is now being shaped more by government policy than by innovation or pricing. As geopolitical tensions continue to influence economic decisions, medical device companies may need to adapt not only their supply chains but also their entire approach to doing business in sensitive regions.”