By Foo Yun Chee
BRUSSELS, Dec 11 (Reuters) – Chinese security firm Nuctech was hit with an EU investigation on Thursday as regulators voiced concerns that it may have received Chinese subsidies that could have boosted its competitive position in Europe.
The move by the European Commission followed dawn raids on Nuctech’s offices in Poland and the Netherlands in April last year, the first under the EU’s Foreign Subsidies Regulation (FSR).
The EU executive highlighted measures granted by China to Nuctech that may be considered as foreign subsidies.
It said the possible foreign subsidies could be grants, preferential tax measures and preferential financing in the form of loans.
“Threat detection systems, including security and inspection scanners used at ports and airports, play an essential role in ensuring that Europe is open, yet secure,” EU antitrust chief Teresa Ribera said in a statement.
“So we want a level playing field on the market for such systems, keeping fair opportunities for competitors, customers such as border authorities,” she said.
Nuctech said it would continue to cooperate with the Commission.
“As a global supplier of security inspection solutions, we operate independently, transparently, and in full accordance with international trade and competition rules,” the company said.
“We trust in the integrity and impartiality of the process and hope our actions will be evaluated on their merits.”
Nuctech makes body and luggage scanners for airports and ports in more than 170 countries and was among Chinese tech companies blacklisted by the U.S.
government in 2020 over security concerns.
Companies found guilty of breaching the FSR risk fines as much as 10% of their global revenue.
(Reporting by Foo Yun Chee;Editing by Elaine Hardcastle)
