China’s finance ministry on Sunday announced new restrictions on government purchases of medical devices from the European Union worth over 45 million yuan ($6.3 million), in retaliation for recent EU trade actions.

The decision follows growing trade friction, including EU tariffs on Chinese electric vehicles and China’s countermeasures targeting imported European brandy.

Last month, the European Union announced it would bar Chinese companies from bidding on public tenders for medical devices worth €60 billion ($70 billion) annually, citing unequal access for EU firms in the Chinese market.

The move marked the first use of the EU’s International Procurement Instrument, a 2022 regulation aimed at ensuring reciprocal access to public procurement markets.

China’s retaliation was widely anticipated, after its commerce ministry signaled it would take “necessary steps” in response to the EU’s decision.

“Regrettably, despite China’s goodwill and sincerity, the EU has insisted on going its own way, taking restrictive measures and building new protectionist barriers,” the commerce ministry said in a separate statement on Sunday.

“Therefore, China has no choice but to adopt reciprocal restrictive measures.”

The European Union’s delegation in Beijing did not immediately comment on the development.

China’s finance ministry also announced it will restrict imports of medical devices from third countries if EU-made components account for more than 50% of the contract value.

The measures take effect on Sunday.