A Chinese security equipment company hit by yesterday's raid - the first carried out by the European Commission under the Foreign Subsidies Regulation - is subject to an investigation begun by the EU executive of its own volition 'ex officio', according to a source familiar with the issue.
The FSR applied since July 2023 and aims to ensure a level playing field for all companies operating in the single market.
The EU Commission carried out the inspections in two member states together with its national counterparts, as reported, but has not revealed the name of the company or its origin. A source familiar confirmed that the investigation had been instigated by the Commission rather than being a response to a complaint, however.
The Chinese Chamber of Commerce in the EU (CCCEU) has revealed that was informed without prior notice of unannounced raids on the premises of a Chinese company in the Netherlands and Poland.
"The CCCEU expresses its serious concern over the EU's unjustified 'dawn raids' on the operations of Chinese companies in the EU," the chamber said in a statement issued on Tuesday evening.
According to the CCCEU, the enforcement agencies seized the company's IT equipment and employees' mobile phones, scrutinised office documents and demanded access to relevant data.
To date, the Commission has opened several investigations into Chinese companies under the regulation, and just today the EU executive launched a probe into China's public procurement of medical devices.
The statement said the chamber is urging the European side to protect the rights and interests of foreign companies in the EU, arguing that these actions send a "detrimental message" to all non-EU companies doing business in the bloc.
If the EU executive finds enough evidence of possible distortions of the single market caused by foreign subsidies it may launch an in-depth investigation.
