The Ministry of Commerce has expressed its firm opposition to the European Union's misuse of unilateral instruments, such as the Foreign Subsidies Regulation (FSR), to target Chinese enterprises. Recently, the European side has not only increased the frequency and scope of its investigations aimed at Chinese companies but has also escalated probes into firms including Nuctech, moving them to in-depth investigations. Furthermore, it has compelled Chinese banking institutions to cooperate with these investigations, unreasonably demanding extensive information from within China that is unrelated to the inquiries. These actions have severely disrupted the normal investment and operations of multiple Chinese companies and financial institutions in Europe.

As early as January 2025, following an investigation, the Ministry of Commerce determined that the EU's FSR-related practices constitute trade and investment barriers. It called on the European side to correct these practices and advocated for managing differences through dialogue. However, the EU has persisted in its unilateral course, continuing down an erroneous path.

In response, the Ministry of Justice, in collaboration with the Ministry of Commerce and based on a thorough investigation, has invoked China's Regulations on Counteracting Unjustified Extraterritorial Application of Foreign Laws. It has ruled that the EU's cross-border investigative practices against relevant Chinese entities in its FSR investigation of Nuctech constitute unjustified extraterritorial jurisdictional measures. The ruling mandates that no organization or individual within China may implement or assist in implementing these measures.

China reiterates its hope that the European Commission will promptly correct its mistaken approach, cease the unjustified suppression of Chinese companies, and discontinue the abuse of the FSR as an investigative tool. It calls for the provision of a fair, just, and predictable business environment for Chinese enterprises operating in Europe. China consistently advocates for managing differences through dialogue and consultation and hopes the EU will work in tandem with China to resolve issues through amicable negotiations. Simultaneously, China will closely monitor the EU's related actions and will take necessary measures to resolutely safeguard national security and the legitimate rights and interests of its enterprises.