China urges non-compliance with EU probe of scanner firm Nuctech
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BEIJING: China has barred domestic organizations and individuals from cooperating with a European Union anti-subsidy investigation into Chinese security screening company Nuctech, calling the probe an ‘unjustified extraterritorial jurisdiction.’
The Ministry of Justice issued the directive Friday, marking the first time Beijing has invoked newly enacted regulations designed to protect domestic companies from foreign legal overreach. China’s commerce ministry accused the EU of creating arbitrary trade barriers, adding that Brussels ignored calls for dialogue in favor of protectionist actions.
The dispute stems from a European Commission investigation launched in December into whether Nuctech, a major supplier of airport luggage and body scanners, benefited from illegal state subsidies.
In response, the European Commission defended the probe Saturday as a standard measure, reiterating that its Foreign Subsidies Regulation treats all companies equally, regardless of nationality. Beijing has warned it will deploy countermeasures if the EU persists.
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