China’s Ministry of Commerce has spoken out against the EU’s use of the Foreign Subsidies Regulation, marking Beijing’s second objection in two days after the Ministry of Justice stated that related cross-border investigations constitute “unlawful extraterritorial jurisdiction,” Bloomberg reports, according to UNN.<\/p>\n
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In a statement released on Saturday, the ministry said that Brussels has increased the frequency and scale of investigations into Chinese companies and escalated the situation, including regarding security device manufacturer Nuctech Co. The EU is demanding cooperation from Chinese banks and making requests for extensive data unrelated to the investigations, which affects the normal operations of companies in Europe, the ministry added in its statement.<\/p>\n
China already determined in January 2025 that the EU’s practices regarding the Foreign Subsidies Regulation constitute trade and investment barriers and called for dialogue, but the bloc continues to follow the same path, the ministry stated.<\/p>\n
The country’s Ministry of Justice stated on Friday that such measures violate international law and basic norms of international relations, and officially prohibited organizations and individuals from complying with them. Beijing urged the EU to adjust its approach and warned that it would take necessary steps to protect national interests and the legitimate rights of companies.<\/p>\n
EU defends investigation into Nuctech following criticism from Beijing<\/p>\n
On Saturday, the European Commission, as noted by Euractiv, defended the investigation it launched into the Chinese company Nuctech, which manufactures security scanners for airports, following sharp criticism from Beijing.<\/p>\n
The European Commission officially launched the investigation into Nuctech in December due to concerns that the company receives illegal state subsidies, following searches of the company’s European offices in 2024. Nuctech is part of a larger group that Beijing indirectly controls.<\/p>\n
On Saturday, a spokesperson for the European Commission told Euractiv that requests for information, such as those being considered within the Nuctech investigation, are “standard measures.”<\/p>\n