China's Ministry of Justice stated on Friday that the EU's anti-subsidy investigation into its security control company Nuctech constitutes an "illegal extraterritorial jurisdiction" and ordered that no organization or individual execute or assist in the execution of such measures.
In a statement released by the ministry on Friday night, a spokesperson noted that the EU has arbitrarily requested excessive and unnecessary national information from Chinese entities during the investigation, which "constitutes an undue demand and clearly violates international law and basic norms of international relations."
The spokesperson mentioned that the EU has "frequently" used its Regulation on Foreign Subsidies to conduct selective and discriminatory investigations against Chinese companies, describing these actions as a "typical example of protectionism" under the pretext of "fair competition."
"We urge the EU party to immediately correct its wrongful actions. If it insists on overstepping its authority, China will respond firmly in accordance with the law," the statement concluded, as reported by the Efe news agency.
A spokesperson from the Chinese Ministry of Commerce explained on Saturday that the EU has intensified investigations into companies like Nuctech to in-depth inquiries, while pressuring Chinese banking entities to cooperate and unjustifiably demanding a large amount of unrelated information within China.
"These practices have seriously and negatively affected the normal investment and operation activities of multiple Chinese companies and banking entities in Europe," stated the spokesperson from the commerce ministry, expressing the hope that the EU corrects its "wrongful practices."
In December, the European Commission (EC) launched an in-depth investigation into the Chinese company Nuctech on suspicions that this security systems manufacturer, controlled by the Chinese state, may have received public subsidies that could distort competition in the European market.
The Commission believes that Nuctech received state support in the form of guarantees, preferential tax treatment, or preferential financing in the form of loans, and it believes that these foreign subsidies may have enhanced its position in the domestic market - giving it an advantage in tenders - and thus affected competition.
This friction adds to other recent tensions between China and the EU in areas such as electric vehicles, clean technologies, public procurement, or industrial policies linked to promoting "made in Europe."