BANGKOK (AP) - China announced on Sunday that it will prohibit European medical device companies from selling products to the Chinese government. This decision is in response to the European Union's (EU) restrictions concerning similar products originating from China.

According to a notice released by the Finance Ministry, European companies will be barred from participating in government procurement budgets exceeding 45 million yuan (approximately $6.28 million). However, this restriction will not affect European companies that have made investments in China and are engaged in local production.

This development follows China's implementation of anti-dumping duties on European brandy, particularly targeting cognac from France. While certain exceptions apply for major brandy producers, it reflects the ongoing trade tensions between China and the EU, which span various sectors. China has expressed dissatisfaction with the EU's imposition of duties on electric vehicles (EVs) made in China, prompting China to initiate investigations into the tariffs on European pork and dairy products.

In June of this year, the EU had announced its own restrictions, stipulating that Chinese companies would be excluded from government contracts exceeding 5 million euros (around $5.89 million). The intention behind the EU's measure is to compel China to abolish perceived discrimination against EU firms, which the EU alleges are faced with "significant and recurring legal and administrative barriers to its procurement market."

In retaliation, China has asserted that it has "no choice but to implement countermeasures" against the EU's actions. A spokesperson from the Ministry of Commerce emphasized that China has consistently communicated its willingness to resolve differences through dialogue and consultation, as well as through bilateral government procurement arrangements. However, the statement criticized the EU for allegedly ignoring China's expressions of goodwill and for persisting in taking restrictive actions and constructing new protective barriers.

This ongoing trade dispute illustrates the complexities and escalating tensions between China and the EU, which are battling various trade-related issues across multiple industries. As both regions continue to implement measures against each other, the potential for further complications in their economic relations remains high.