China ‘seriously concerned’ about EU attacks on security equipment company | Economy

Diplomatic mission condemns attacks on the Dutch and Polish offices of the Chinese company Nuctech.

China expressed “serious concern” about raids carried out by European authorities on a Chinese company that manufactures security equipment.

EU competition regulators on Tuesday raided the offices of Chinese company Nuctech in the Netherlands and Poland as part of an investigation into unfair state subsidies.

In a statement released on Thursday, China’s mission to the EU said it deplored the “unannounced inspections” and criticized Brussels for not directly raising its concerns with the company or Chinese authorities.

“The Chinese side believes that the EU’s unannounced inspections interfere with the order of fair competition in the market, clearly undermine the positive atmosphere of trade and economic cooperation between China and the EU, and cause a severe shock to confidence and security sentiment of citizens. all foreign companies in the EU, including Chinese ones,” the mission said.

“It also highlights the further deterioration of the EU business environment and sends an extremely negative signal to all foreign companies operating in the EU. Protectionism cannot bring prosperity, and suppressing others will only weaken one’s competitiveness.”

The EU should “respect its commitment to the open market and the principles of a level playing field, and stop using all types of excuses to unjustifiably suppress and impede Chinese companies,” the mission added, expressing hopes for cooperation and exchanges. in an “open, fair and equitable manner”.

Our Mission is gravely concerned and deplores the EU’s unannounced inspections of a Chinese company. #China urges the #HUH honor its commitments to the opening of markets and the principles of fair competition, and stop using various pretexts to suppress and unjustifiably hinder … pic.twitter.com/al1889hJuw

— China’s Mission to the EU (@ChinaEUMission) April 24, 2024

The comments came after the China Chamber of Commerce with the EU (CCCEU) on Wednesday expressed “serious concern” about the attacks.

“The European side has expressed its intention to transform the Foreign Subsidies Regulation as a tool to suppress Chinese companies operating legally in Europe,” the chamber said in a statement.

“The CCCEU expresses its strong dissatisfaction with the attacks by the European side on companies created by Chinese companies in the EU without prior warning and without solid evidence.”

Nuctech, which makes scanning equipment for airports and border crossings, said it is cooperating with authorities and is committed to “defending its reputation as a completely independent and self-sustainable economic operator”.

The European Commission said it carried out the operations as a “preliminary investigative step” after receiving indications that an unidentified company may have received foreign subsidies that could distort the market.

The raids were the first such actions taken by the commission since it adopted the Regulation on Foreign Subsidies in July last year, amid concerns about market distortions caused by foreign subsidies.