China hopes the European Commission will promptly correct its wrong practices, stop its unreasonable suppression of Chinese enterprises, and cease abusing investigation tools under the Foreign Subsidies Regulation (FSR), a Ministry of Commerce spokesperson said on Saturday.
The comments came in response to a notice issued by China's Ministry of Justice on Friday, which said that the EU's cross-border anti-subsidy probe of Chinese companies under the FSR constitutes unlawful extraterritorial jurisdiction.
The spokesperson emphasized that China has consistently opposed the EU's abuse of unilateral tools such as the FSR to suppress Chinese companies.
Recently, the EU has not only intensified its investigations into Chinese companies and expanded their scope, but it has also escalated its probes into companies, including in-depth probes of Chinese security check company Nuctech. Additionally, it has compelled Chinese banks to cooperate with these investigations and has unreasonably demanded large amounts of information from within China that is largely unrelated to the probes, according to the spokesperson.
These moves have seriously affected the normal investment and business operations of multiple Chinese companies and banks in Europe, said the spokesperson.
As early as January 2025, the Ministry of Commerce concluded through an investigation that the EU's practices under the FSR constituted trade and investment barriers, and called on the EU to rectify these practices while advocating for properly managing differences through dialogue, the spokesperson said. However, the EU has insisted on its own course and has continued down the wrong path.
In response, the Ministry of Justice, in coordination with the Ministry of Commerce, determined after a thorough investigation that the bloc's anti-subsidy probe into Nuctech constitutes unlawful extraterritorial jurisdiction under the rules on countering foreign states' unlawful extraterritorial jurisdiction. No organization or individual may comply with or aid the EU's unlawful extraterritorial jurisdictional measure.
China urges the EU to provide a fair, just, and predictable business environment for Chinese companies investing and operating in Europe, the spokesperson said.
China has always advocated managing differences through dialogue and consultation and hopes the EU will work with China to resolve issues through friendly consultations. At the same time, China will closely monitor the EU's relevant actions and will take necessary measures to firmly safeguard national security and the legitimate rights and interests of Chinese companies, according to the spokesperson.
China urges EU to stop abusing foreign subsidies probe tools
