Agency- The European Union has opened a formal investigation into Chinese security-scanner manufacturer Nuctech, examining whether the company gained an unfair advantage in the European market through illegal state subsidies.
The probe follows unannounced European Commission inspections at Nuctech facilities in Poland and the Netherlands in April 2024. Initial findings suggest the company may have benefited from Chinese government support, including grants, preferential tax treatment, and subsidised financing—measures the Commission fears could have distorted competition within the 27-nation bloc.
Nuctech, a major supplier of detection scanners used in airports, ports, and customs services, has previously faced scrutiny in Europe and was banned in Lithuania in 2021 on national security grounds.
EU competition chief Teresa Ribera said threat-detection systems are critical to Europe’s security framework, underscoring the need for a level playing field in the market.
The investigation is being conducted under the EU’s new 2023 foreign subsidies regulation, designed to curb unfair advantages enjoyed by foreign companies receiving state assistance.
Nuctech, a subsidiary of Chinese state-controlled Tsinghua Tongfang, said it operates independently and in compliance with international trade rules, urging the Commission to ensure an unbiased assessment of the facts.
