The Ministry of Commerce of China File photo: VCG

China has consistently opposed the EU’s abuse of unilateral tools such as the Foreign Subsidies Regulation (FSR) to suppress Chinese companies, a spokesperson for China’s Ministry of Commerce (MOFCOM) said on Saturday, vowing to closely monitor relevant developments on the EU side and take necessary measures to firmly safeguard national security and the legitimate rights and interests of Chinese companies.

The spokesperson made the remarks in response to questions regarding a notice issued on Friday by China’s Ministry of Justice, which stated that the EU’s cross-border investigations into Chinese entities under the FSR constituted improper extraterritorial jurisdiction measures.

Recently, the EU has not only increased the frequency of investigations targeting Chinese enterprises and expanded the scope of such investigations, but has also escalated its investigation into companies including Nuctech to in-depth investigations, while coercing Chinese banking institutions to cooperate with the probes and unreasonably demanding large amount of information within China that is unrelated to the investigations, the spokesperson said.

The normal investment and business operations of multiple Chinese enterprises and banking institutions in Europe have been seriously negatively affected, the spokesperson added.

As early as January 2025, China’s Ministry of Commerce concluded through an investigation that the EU’s relevant practices under the FSR constituted trade and investment barriers, and called on the EU to correct those practices while advocating properly managing differences through dialogue, according to the spokesperson. However, the EU has persisted in this course and gone further down the wrong path.

In response, China’s Ministry of Justice, together with the Ministry of Commerce, concluded after an investigation that the EU’s cross-border investigative measures against Chinese entities in its FSR probe into Nuctech constitute improper extraterritorial jurisdiction under the Rules on Counteracting Unjustified Extraterritorial Application of Foreign Legislation and Other Measures, according to the spokesperson, adding that no organization or individual shall carry out or assist in carrying out such measures.

MOFCOM reiterated its hope that the European Commission will promptly correct its wrong practices, stop its unreasonable suppression of Chinese enterprises, cease abusing FSR investigative tools, and provide a fair, just and predictable business environment for Chinese enterprises operating and investing in Europe. 

“China has consistently advocated managing differences through dialogue and consultation, and hopes the EU will work with China in the same direction to resolve issues through friendly consultations,” the spokesperson said. At the same time, China will closely monitor relevant developments on the EU side and take necessary measures to firmly safeguard national security and the legitimate rights and interests of Chinese companies, according to the spokesperson.

Global Times