By Philip Blenkinsop

BRUSSELS (Reuters) -EU medical device suppliers are not given fair access to China's public tenders, the European Commission concluded on Tuesday, a finding that could lead to restrictions on Chinese suppliers in Europe.

The EU executive said it could exclude Chinese bidders from EU public procurement markets or attach a penalty score to their bids for five years to tackle what it described as discrimination.

The Commission launched its first ever investigation in April 2024 under its International Procurement Instrument, which aims to ensure reciprocity.

The Commission said it had since found "clear evidence" that China had measures and practices favouring Chinese devices for hospitals and conditions in tenders leading to abnormally low bids that profit-oriented companies could not offer.

Beijing criticised the investigation's launch at the time and the report is likely to increase tensions. China's commerce ministry said last week that EU investigations into Chinese firms, notably those that manufacture electric vehicles, constituted unfair trade.

Chinese President Xi Jinping told European Council President Antonio Costa in a phone call on Tuesday he hoped the European Union could become a "a trustworthy partner for cooperation".

The Commission said the European Union was committed to engaging with China to end the discrimination, but if no acceptable solution was found, it could adopt corrective measures.

"If it finds that such measures are in the EU interest, they could include a restriction on, or exclusion of, Chinese bidders of government contracts in the EU," the Commission said.  

The Commission has previously said discussions with China on medical devices had been "fruitless".

(Reporting by Philip Blenkinsop and Bart MeijerEditing by Christina Fincher)