The European Commission has utilized its newly acquired authority under the Foreign Subsidies Regulation to conduct a raid on an unidentified Chinese company. The raid, which is the first of its kind under the new regulation, was conducted simultaneously in multiple member states by the Commission in collaboration with national authorities. The name and origin of the targeted company have not been disclosed.
However, a source familiar with the matter has revealed that the investigation was initiated by the Commission itself rather than being triggered by a formal complaint. The Foreign Subsidies Regulation, which came into effect in July 2023, aims to establish a level playing field for businesses operating within the single market.
The Chinese Chamber of Commerce to the EU (CCCEU) has expressed strong reservations about the unannounced raids conducted on the Chinese company’s premises in the Netherlands and Poland. In a statement, the CCCEU condemned the EU’s actions as unjustified and expressed concern over the seizure of IT equipment, mobile phones, and office documents, as well as the demand for access to sensitive data.
The CCCEU has urged the European Commission to safeguard the rights and interests of foreign companies operating within the EU, emphasizing that these actions send a negative message to non-EU businesses. The Commission has initiated numerous investigations into Chinese companies under the Foreign Subsidies Regulation, including a probe into medical devices launched today. If the Commission determines that foreign subsidies have potentially distorted the single market, it may initiate in-depth investigations.
