Chinese security firm Nuctech challenges EU raids over alleged subsidies

By Foo Yun Chee

BRUSSELS (Reuters) – Chinese security equipment company Nuctech is suing the European Commission over searches of its Dutch and Polish offices, saying there is no evidence to support claims it benefited from illegal state support.

The company, which makes body and baggage scanners for airports and ports in more than 170 countries and was blacklisted by the US Bureau of Industry, Security and Commerce in 2020, said it had appealed to the General Court of Luxembourg, the second highest court in Europe. .

The challenge comes two months after the European Commission raided two of Nuctech's EU premises on suspicion it received competition-distorting foreign subsidies in breach of the bloc's Foreign Subsidies Regulation (FSR) introduced in 2023 .

Nuctech, partly public, has denied the EU's allegations.

“Nuctech has appealed to the EU General Court against the European Commission's decision to inspect Nuctech's offices on suspicion of breaching the EU regulation on foreign subsidies,” the company said in a statement. communicated.

“Nuctech also asked the EU General Court to suspend the inspection in order to avoid any potential harm to Nuctech,” the statement said.

The Commission did not immediately respond to a request for comment.

It could take several years before the court rules.

The Commission, which acts as the EU's competition enforcer, has launched four investigations against Chinese companies under the FSR to assess whether subsidies helped companies outbid rivals Europeans in calls for tender.

(Reporting by Foo Yun Chee; editing by Mark Potter)