China Condemns EU Raids on Nuctech Offices in the Netherlands and Poland

The recent raids on the Dutch and Polish offices of Chinese company Nuctech by European officials have sparked a diplomatic row between China and the EU. The EU competition regulators conducted the raids as part of a probe into unfair state subsidies, leading to strong reactions from the Chinese diplomatic mission and the China Chamber of Commerce to the EU.

China has expressed “grave concern” over the unannounced inspections, stating that it interferes with fair competition in the market and undermines the positive atmosphere of trade and economic cooperation between China and the EU. The Chinese mission urged the EU to honor its commitments to open markets and fair competition, calling for an end to unjustified suppression of Chinese companies.

The China Chamber of Commerce to the EU also voiced “serious concern” over the raids, accusing the European side of using the Foreign Subsidies Regulation to suppress Chinese companies in Europe without solid evidence. Nuctech, the targeted company that manufactures security equipment, has pledged to cooperate with authorities and defend its reputation as an independent economic operator.

The European Commission defended its actions, stating that the raids were a preliminary investigative step based on indications of potential market distortions caused by foreign subsidies. This marks the first enforcement of the Foreign Subsidies Regulation, which was introduced last year to address concerns about unfair competition in the market.

The escalating tensions between China and the EU highlight the challenges of balancing trade relations and competition policies in a globalized economy. The outcome of this diplomatic dispute could have significant implications for future cooperation and exchanges between the two economic powerhouses.