The Ministry of Commerce has responded to media inquiries regarding the determination that the EU's foreign subsidy investigation practices constitute improper extraterritorial jurisdiction measures.

In response to a question about the Ministry of Justice's announcement on May 15th stating that the EU's cross-border investigation practices against Chinese entities using the Foreign Subsidies Regulation constitute "improper extraterritorial jurisdiction measures," a spokesperson from the Ministry of Commerce commented.

The spokesperson stated that China consistently opposes the EU's misuse of unilateral tools like the Foreign Subsidies Regulation to suppress Chinese enterprises. Recently, the EU has not only increased the frequency and expanded the scope of investigations targeting Chinese companies but has also escalated the investigation into firms such as Nuctech into in-depth inquiries. Furthermore, it has compelled Chinese banking institutions to cooperate with these investigations, unreasonably demanding extensive information unrelated to the probe from within China. The normal investment and operations of multiple Chinese enterprises and financial institutions in Europe have been severely negatively impacted.

The Ministry of Commerce had already determined through an investigation in January 2025 that the EU's FSR-related practices constitute trade and investment barriers. It called on the EU to correct these practices and advocated for properly managing differences through dialogue. However, the EU has persisted in its unilateral actions, moving further down the wrong path.

In response, based on thorough investigations, the Ministry of Justice, in conjunction with the Ministry of Commerce, has determined under China's Regulations on Countering Unjustified Extraterritorial Application of Foreign Laws and Measures that the EU's cross-border investigation practices against relevant Chinese entities in its FSR investigation of Nuctech constitute improper extraterritorial jurisdiction measures. It has mandated that no organization or individual shall implement or assist in implementing these measures.

China reiterates its hope that the European Commission will promptly correct its erroneous practices, cease the unreasonable suppression of Chinese enterprises, stop misusing the FSR investigation tool, and provide a fair, just, and predictable business environment for Chinese companies investing and operating in Europe. China consistently advocates for managing differences through dialogue and consultation and hopes the EU will work with China to resolve issues through friendly negotiations. Simultaneously, China will closely monitor relevant developments from the EU and will take necessary measures to resolutely safeguard national security and the legitimate rights and interests of enterprises.