Diplomatic mission condemns raids on Dutch and Polish offices of Chinese company Nuctech.
China has expressed “great concern” over raids by European officials on a Chinese company that makes security equipment.
EU competition regulators searched offices of Chinese company Nuctech in the Netherlands and Poland on Tuesday as part of an investigation into unfair state subsidies.
In a statement on Thursday, China’s mission to the EU said it regretted the “unannounced inspections” and criticized Brussels for not raising its concerns directly with the company or Chinese authorities.
“The Chinese side believes that the EU’s unannounced inspections affect the order of fair competition in the market, clearly endanger the positive atmosphere of trade and economic cooperation between China and the EU, and cause a strong shock to confidence and sense of security “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 oppressing others will only weaken one’s own competitiveness.”
The EU should “remain faithful to its commitment to the open market and the principles of a level playing field and stop using all possible excuses to unduly oppress and hinder Chinese companies,” the mission added, expressing hope for cooperation and exchanges an “open, fair and equal path”.
Our Mission is deeply concerned and regrets the EU’s unannounced inspections of a Chinese company. #China demands the #EU to fulfill its commitments to open markets and the principles of fair competition and to stop using various pretexts to unjustifiably oppress and obstruct 🇨🇳… pic.twitter.com/al1889hJuw
— Mission of China to the EU (@ChinaEUMission) April 24, 2024
The comments came after the Chinese Chamber of Commerce to the EU (CCCEU) expressed “serious concerns” about the raids on Wednesday.
“The European side has expressed its intention to use the Foreign Subsidies Regulation as a tool to suppress legitimately operating Chinese companies in Europe,” the chamber said in a statement.
“The CCCEU expresses its great dissatisfaction that the European side is carrying out raids on companies established by Chinese companies in the EU without prior notice and without any solid evidence.”
Nuctech, which makes scanning equipment for airports and border crossings, said it was cooperating with authorities and committed to “defending its reputation as a fully independent and self-sustaining economic operator.”
The European Commission said it carried out the raids as a “preliminary investigative step” after receiving tips that an unnamed company may have received foreign subsidies that could distort the market.
The raids were the first such measures taken by the Commission since the adoption of the Foreign Subsidies Regulation in July last year due to concerns about market distortions caused by foreign subsidies.