China blocks cooperation with EU probe into security scanner maker Nuctech

China’s Ministry of Justice issued a legal notice prohibiting any Chinese entity or individual from assisting the European Union’s investigation under the EU’s Foreign Subsidies Regulation (FSR) into security‑equipment company Nuctech. The notice was followed by a statement from the Ministry of Commerce, which condemned the EU’s actions as an “unjustified extraterritorial jurisdiction measure” and accused Brussels of using the FSR as a protectionist tool against Chinese firms.

The dispute centres on raids conducted by the European Commission in April 2024 on Nuctech as part of the FSR probe into alleged market‑distorting state subsidies. Chinese authorities say the investigation has “severely adverse” effects on Chinese companies operating and investing in Europe and that the regulation is being misused to suppress Chinese enterprises across sectors such as rail, solar and security scanning.