The European Commission opened an investigation into alleged discrimination against European companies in the Chinese medical market on Wednesday.
"China's procurement market for medical devices has gradually become more closed for European and foreign firms," the commission said in a statement accompanying the investigation's launch.
The probe comes after the EU executive arm failed to improve market access for European companies despite repeated engagements with Chinese authorities, often at a high level .
According to the commission, China takes measures that "unfairly differentiate" between foreign and Chinese companies as well as between medical devices that are imported and produced locally.
The medical devices in question are products used for sterilization, ventilation, X-rays, as well as crutches and bandages, according to investigation details published in the EU Official Journal, a register of EU laws.
The investigation is the first taken under powers granted by International Procurement Instrument (IPI), an EU trade tool to ensure equal market access between the European Union and other trade partners.
The process lasts nine months with an extension possible for five more.
If the investigation finds that discriminatory practices are taking place, and China is unable to address the commission's concerns, then counter measures can be taken, up to and including exclusion from bidding from EU procurement tenders.