in-cyprus 10 July 2025 - by Marilena Panagi
Cyprus’s health insurance and state health services organisations have largely avoided disruption from new European Union restrictions on Chinese medical technology procurement, though procurement procedures required adjustment in some cases.
The EU ban, announced in late June, excludes Chinese companies from medical technology public contracts exceeding €5 million whilst limiting Chinese product participation in tenders to 50%.
The Health Insurance Organisation (HIO) encountered initial complications when a diabetes-related medical equipment tender worth over €10 million was already underway before the ban’s implementation. The organisation modified tender documents to comply with EU requirements, excluding at least two companies preparing to bid with Chinese-origin products.
The HIO had progressed significantly on the diabetes equipment procurement before the European restriction took effect, necessitating procedural changes to meet compliance standards.
Beyond the specific diabetes equipment tender, the HIO faced minimal operational disruption as existing contracts signed before the ban’s implementation remained unaffected by new regulations.
Most procurement processes maintain estimated costs below the €5 million threshold, allowing continued progression regardless of European restrictions, according to sources.
The State Health Services Organisation (SHSO) reported similar circumstances despite Cyprus’s concerns expressed at EU level during policy discussions. The €5 million limit appears to accommodate medical equipment purchases for state hospitals without significant operational impact.
SHSO representatives indicated no immediate problems whilst noting future tenders will incorporate European decision requirements if necessary.
Exception provisions
The EU decision includes provisions for exceptions when alternative suppliers beyond Chinese-origin product providers are unavailable, preventing potential shortages of critical medical equipment across European health systems.
These safeguards aim to maintain adequate medical technology supply whilst implementing strategic procurement restrictions on Chinese medical equipment manufacturers.
The policy reflects broader EU efforts to reduce dependency on Chinese medical technology in critical healthcare infrastructure whilst maintaining operational continuity across member state health systems.
Cyprus’s experience suggests most routine medical equipment procurement remains unaffected due to value thresholds, though larger infrastructure projects may require adjusted supplier evaluation processes.
