AsianFin -- China has pushed back against European Union restrictions on its medical device firms, announcing retaliatory measures while preserving key exceptions — a move that adds fresh tension to bilateral relations ahead of a closely watched summit later this month.

Beijing will bar EU-based companies from participating in Chinese government procurement for certain medical devices, the Ministry of Finance said in a statement on Sunday.

However, in a separate notice, the Ministry of Commerce clarified that the restrictions will not apply to medical products manufactured within China. That carveout offers some reprieve for major European firms such as Siemens Healthineers AG and Royal Philips NV, which have ramped up local production to serve the Chinese market.