China orders entities not to comply with EU probe into Nuctech

BEIJING - Beijing on Friday (May 15) 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."

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.

"We urge the EU to immediately correct wrong practices and create a fair, just and predictable market environment for China-EU co-operation," a justice ministry spokesperson said in a separate statement, threatening "firm countermeasures".

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.

The requests for information are "standard measures", a European Commission's spokesperson responded in an email.

"The Foreign Subsidies Regulation does not distinguish between companies based on their nationality or ownership and is consistent with the EU's international obligations," he said.

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 US government in 2020 over security concerns.

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