China Cites New Law to Block EU Probe into Nuctech

China's Ministry of Justice announced that no organization or individual may assist the EU in its investigation into Chinese security equipment supplier Nuctech. This marks the first time China has invoked its "Anti-Foreign Sanctions Law." The European Commission launched an investigation last year, alleging Nuctech may have received official subsidies to gain a competitive advantage. China's Ministry of Justice considers the EU's cross-border investigation practices to be improper extraterritorial jurisdiction measures and stated that if the EU insists on overstepping, China will resolutely counter it according to law.
International TradeNQ 80/100出典:PR Times

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  • 📰 Published: May 16, 2026 at 12:28
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The European Commission announced last year that it had launched an in-depth investigation into Chinese security equipment supplier Nuctech, alleging that Nuctech may have received official subsidies to gain a competitive advantage, which would negatively impact the EU market. Nuctech is affiliated with Tsinghua Tongfang Group, which is indirectly controlled by the Chinese government.

The Chinese Ministry of Justice's official website issued an announcement on the 15th, stating that according to the provisions of China's "Anti-Foreign Unjust Extraterritorial Jurisdiction Provisions," the Ministry of Justice, along with the Ministry of Commerce and other relevant departments, investigated and determined that the EU's cross-border investigation practices in its investigation of Nuctech using the "Foreign Subsidies Regulation" constitute improper extraterritorial jurisdiction measures.

The Chinese Ministry of Justice stated that no organization or individual may implement or assist in implementing these improper extraterritorial jurisdiction measures, effective immediately.

A spokesperson for the Chinese Ministry of Justice stated that they urge the EU to immediately correct its erroneous practices and create a fair, just, and predictable market environment for Sino-European cooperation. If the EU insists on overstepping, China will resolutely counter it according to law.

China announced and implemented the "Anti-Foreign Unjust Extraterritorial Jurisdiction Provisions" in April this year, stipulating that if foreign entities implement improper extraterritorial jurisdiction measures that harm China's national sovereignty, security, and development interests, or infringe upon the legitimate rights and interests of Chinese citizens and organizations, the Chinese government has the right to take various counter-measures, including extraterritorial jurisdiction in trade and investment.

Reuters reported on the 15th that this is the first time China has invoked the "Anti-Foreign Unjust Extraterritorial Jurisdiction Provisions." A spokesperson for the European Commission stated that requesting companies to submit data is standard practice and the "Foreign Subsidies Regulation" does not distinguish between the country of origin or ownership of companies.

FAQ

What is the reason for the EU's investigation into Nuctech?

The EU is investigating Nuctech because it suspects the company may have received official subsidies to gain a competitive advantage in the EU market.

What is China's response to the EU's investigation?

China's Ministry of Justice has invoked its "Anti-Foreign Unjust Extraterritorial Jurisdiction Provisions," prohibiting any organization or individual from assisting the EU in its investigation. China considers the EU's actions to be improper extraterritorial jurisdiction.

What is the "Anti-Foreign Unjust Extraterritorial Jurisdiction Provisions"?

This is a Chinese law implemented in April that allows the Chinese government to take counter-measures against foreign entities whose extraterritorial jurisdiction measures harm China's interests or rights.

Has China used this law before?

No, this is the first time China has invoked the "Anti-Foreign Unjust Extraterritorial Jurisdiction Provisions."

What is the EU's stance on the investigation?

The EU states that requesting data from companies is standard practice and that the "Foreign Subsidies Regulation" applies regardless of a company's origin or ownership.