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CCCEU expresses serious concern over the European side's unannounced raids on Chinese companies Operating in Europe

CCCEU| Updated: Apr 24, 2024

On April 23, 2024, China Chamber of Commerce to the EU (CCCEU) was informed that the offices of a Chinese company in Poland and the Netherlands were subject to investigation regarding foreign subsidies. Without prior notice, enforcement agencies authorized by the European Commission conducted raids at the company's offices in both countries in the morning. They seized the company's IT equipment and employees' mobile phones, scrutinized office documents, and demanded access to pertinent data. The CCCEU expresses serious concern over the EU conducting unjustifiable unannounced raids on the Chinese company's subsidiaries in the EU.

The CCCEU is of the view that suspicions of subsidies can be followed by reasonable means of investigation. The European side manifested its intention to weaponize the Foreign Subsidies Regulation as a tool to suppress lawfully operating Chinese companies in Europe. The CCCEU expresses its strong dissatisfaction with the European side's raids on companies set up by Chinese enterprise in the EU without prior notice and without solid evidence.

The CCCEU believes that the EU's actions send a detrimental message not only to Chinese enterprises but to all non-EU companies operating in the bloc. Over the last two months, the EU has initiated four investigations under the Foreign Subsidies Regulation, all targeted at Chinese firms. The sudden unannounced inspection on April 23 undermines the business environment for foreign companies within the EU on the pretext of foreign subsidies.

The CCCEU and its members are extremely shocked at and dissatisfied with the announced inspection on April 23. We urge the European side to stop the abuse of  FSR tools and to effectively safeguard the legitimate rights and interests of foreign enterprises in the EU. Furthermore, we call for the provision of a genuinely fair and non-discriminatory business environment for all the non-EU enterprises.