Q: On May 15, the Ministry of Justice of the People’s Republic of China issued an announcement determining that the EU’s cross-border investigative practices against Chinese entities under its Foreign Subsidies Regulation (FSR) constitute “improper extraterritorial jurisdiction.” What is MOFCOM’s comment on this?

A: China has always opposed the EU’s abuse of unilateral tools such as the FSR to suppress Chinese enterprises. Recently, the EU has not only increased the frequency and scope of its investigations targeting Chinese companies, but also escalated its probes into enterprises, including Nuctech, to in-depth investigations. Furthermore, it has compelled Chinese banking institutions to cooperate with these investigations, unreasonably demanding extensive access to a large amount of information within China that is unrelated to the investigations. The normal investment and operation of multiple Chinese companies and banking institutions in Europe have been severely and adversely affected.

As early as January 2025, MOFCOM concluded through investigation that the relevant EU practices under the FSR constitute trade and investment barriers. MOFCOM called on the EU side to correct these practices and advocated for the proper management of differences through dialogue. However, the EU side has remained obstinate and gone further down the wrong path.

In response, following a comprehensive investigation, the Ministry of Justice, in conjunction with MOFCOM, has determined that the cross-border investigative practices taken by the EU against certain Chinese entities during its FSR probe into Nuctech constitute improper extraterritorial jurisdiction measures. This determination was made in accordance with the Regulations of the People’s Republic of China on Countering Foreign States’ Unlawful Extraterritorial Jurisdiction. Consequently, it has been ordered that no organization or individual shall execute or assist in the execution of such measures.

China reiterates its hope that the European Commission will promptly correct its erroneous practices, cease its unjustified suppression on Chinese enterprises, stop abusing the FSR investigation tool, and provide a fair, just, and predictable business environment for Chinese enterprises investing and operating in Europe. China has always advocated for managing differences through dialogue and consultation, and hopes that the EU side will pull with China in the same direction to resolve the issue through friendly consultations. At the same time, we will closely follow the EU’s subsequent actions and take necessary measures to resolutely safeguard national security and the legitimate rights and interests of Chinese enterprises. (Released on May 16)