Nuctech, a Chinese company manufacturing security scanners, is suing the European Commission after its offices were raided on suspicion of receiving illegal state subsidies. The company denies the allegations and is seeking to have the investigation suspended.
The European Commission raided Nuctech’s offices in the Netherlands and Poland in April as part of a broader effort to investigate potential breaches of the bloc’s Foreign Subsidies Regulation. This regulation, introduced in 2023, allows the EU to assess if foreign subsidies give companies an unfair advantage in winning contracts.
Nuctech, which is partly state-owned, argues there’s no evidence to support the claims and has appealed to the General Court, Europe’s second-highest court. The EU Commission maintains its right to investigate and will defend its decision in court. A final ruling could take several years.
Source: Reuters