China Blocks EU Anti-Subsidy Probe into Nuctech

China's Ministry of Justice ordered domestic organizations and individuals on May 15, 2026, to refuse cooperation with the European Union's anti-subsidy investigation into Nuctech, a Chinese security inspection equipment supplier. The ministry declared the EU's probe unlawful, characterizing it as an exercise of unjustified extraterritorial jurisdiction and a violation of international law. China warned it will take firm countermeasures if the EU continues its current practices.

The dispute traces back to April 2024, when the European Commission conducted unannounced inspections of Nuctech's offices in Poland and the Netherlands. Nuctech refused to provide data from Chinese servers during those raids. The company subsequently challenged the investigation in the General Court and the Court of Justice of the European Union, but both courts rejected its request to suspend the probe. In December 2025, the European Commission launched a formal in-depth investigation, alleging that Chinese government subsidies distorted competition in the EU market.

China's prohibition marks the first application of regulations introduced in April 2026 designed to shield Chinese firms from foreign interference. The Ministry of Commerce had already identified EU investigative practices as trade and investment barriers in January 2025. The European Commission defended its actions, stating that the information requests are standard measures under the Foreign Subsidies Regulation and do not discriminate based on nationality.