After conducting surprise inspections on Nuctech’s premises in Poland and the Netherlands in 2024 (see EUROPE 13397/32), the European Commission decided on Thursday, 11 December, to open an in-depth investigation into foreign subsidies that the Chinese company reportedly received from China.
The action taken by the European Commission falls within the scope of the regulation that combats unfair foreign subsidies (FSR), which allows the EU to conduct investigations when it suspects that companies responding to calls for tenders have received foreign subsidies that give them an advantage.
This is the case with Nuctech, a company that produces threat detection systems, including scanners for security checks that are used in many airports and ports in the EU.
Nuctech is part of Tsinghua Tongfang, a group that is indirectly controlled by the Chinese State.
According to the European Commission, the company reportedly received not only subsidies but also advantageous tax measures and loans from China. As a result, Nuctech has likely been able to submit proposals—in calls for tenders to supply security devices—with much lower prices than its competition.
The investigation will establish whether or not the accusations are true, after which the European Commission will be able to, if necessary, take decisions so as to restore a level playing field.
In 2024, Nuctech took legal action against the EU over inspections conducted on the company’s premises (see EUROPE 13424/17). (Original version in French by Léa Marchal)