China Orders Firms Not to Cooperate With EU Anti-Subsidy Probe of Nuctech
China's Response to EU Investigation
Official Order and Rationale
BEIJING, May 15 (Reuters) - Beijing on Friday ordered Chinese entities not to assist a European Union anti-subsidy investigation into the Chinese security firm Nuctech.
The justice ministry said the EU was arbitrarily demanding "extensive and non-essential information within China from Chinese entities", which it termed "unjustified extraterritorial jurisdiction."
Regulatory Background
The order is the first application of regulations introduced in April to protect Chinese firms against what Beijing deems improper foreign interference as it expands its economic toolkit.
China's Demands and Threats of Countermeasures
"We urge the EU to immediately correct wrong practices and create a fair, just and predictable market environment for China-EU cooperation," a justice ministry spokesperson said in a separate statement, threatening "firm countermeasures".
Details of the EU Investigation
Focus on Nuctech
The EU opened an in-depth investigation into Nuctech in December over concerns that it may have received subsidies that could boost its competitiveness in Europe.
Nuctech's Global Operations and Previous Blacklisting
The company makes body and luggage scanners for airports and ports in more than 170 countries, and was among Chinese tech firms blacklisted by the U.S. government in 2020 over security concerns.
(Reporting by Shi Bu, Xiuhao Chen and Liz Lee, Editing by Louise Heavens)
