Nuctech Hit by EU Investigation Over Concerns of Unfair Chinese Subsidies in Security Equipment Market
The European Commission has launched a formal investigation into Chinese security firm Nuctech under the Foreign Subsidies Regulation, alleging the company received state subsidies that distorted competition in Europe's critical infrastructure sector.
Insights:
The European Commission has opened a formal investigation into Chinese security equipment manufacturer Nuctech on Thursday, marking a significant escalation in regulatory scrutiny of state-backed Chinese competitors operating in Europe's critical infrastructure sectors. The probe centers on allegations that the company received Chinese government subsidies that may have provided unfair competitive advantages in the European market for threat detection systems.
The investigation, conducted under the EU's Foreign Subsidies Regulation (FSR), follows dawn raids on Nuctech's offices in Poland 
PL and the Netherlands 
NL in April 2024—the first enforcement actions under the new regulatory framework. EU antitrust chief Teresa Ribera teresa ribera emphasized the strategic importance of maintaining fair competition in the security inspection market, stating that threat detection systems used at ports and airports play an essential role in ensuring that Europe 
EU remains open yet secure.
PL and the Netherlands NL in April 2024—the first enforcement actions under the new regulatory framework. EU antitrust chief Teresa Ribera teresa ribera emphasized the strategic importance of maintaining fair competition in the security inspection market, stating that threat detection systems used at ports and airports play an essential role in ensuring that Europe EU remains open yet secure.
