EU raids offices of Nuctech, Chinese security equipment maker

EU. Photo Courtesy: Unsplash

#EU, #Raids, #China, #Nuctech

IBNS-CMEDIA: The European Union on Friday said it carried out raids at the offices of Chinese security equipment maker Nuctech as part of a probe into subsidies, an episode which may further escalate tension.

In a statement, the European Commission said: “The European Commission is carrying out unannounced inspections at the premises of a company active in the production and sale of security equipment in the European Union.”

The Commission said it has indications that the inspected company may have received foreign subsidies that could distort the internal market pursuant to the Foreign Subsidies Regulation.

“The Commission officials were accompanied by their counterparts from the national competition authorities of the Member States where the inspections were carried out,” the body said.

“Unannounced inspections are a preliminary investigative step into suspected distortive foreign subsidies. The fact that the Commission carries out such inspections does not mean that the company in question has indeed received distortive foreign subsidies, nor does it prejudge the outcome of the investigation. If the Commission were to find sufficient indications of the existence of distortive foreign subsidies, it will open an in-depth investigation,” the body further said in the statement.

Meanwhile, China Chamber of Commerce to the EU (CCCEU) said it was informed that the offices of a Chinese company in Poland and the Netherlands were subject to investigation regarding foreign subsidies.

“Without prior notice, enforcement agencies authorized by the European Commission conducted raids at the company’s offices in both countries in the morning. They seized the company’s IT equipment and employees’ mobile phones, scrutinized office documents, and demanded access to pertinent data. The CCCEU expresses serious concern over the EU conducting unjustifiable unannounced raids on the Chinese company’s subsidiaries in the EU,” CCCEU said in a statement.

The CCCEU said it expressed its strong dissatisfaction with the European side’s raids on companies set up by Chinese enterprise in the EU without prior notice and without solid evidence.

” The CCCEU and its members are extremely shocked at and dissatisfied with the announced inspection on April 23. We urge the European side to stop the abuse of  FSR tools and to effectively safeguard the legitimate rights and interests of foreign enterprises in the EU. Furthermore, we call for the provision of a genuinely fair and non-discriminatory business environment for all the non-EU enterprises,” the statement said.

Nuctech said it is cooperating with the European Commission and is committed to defending its reputation.