On April 26, in Brussels, China Chamber of Commerce to the EU (CCCEU) convened an urgent virtual training session, honing in on corporate strategies tailored to navigate unanticipated inspections within the framework of the Foreign Subsidies Regulation (FSR). This training came following recent "dawn raids" targeting Chinese enterprises in Poland and the Netherlands, causing reverberations throughout the business landscape.

The training aimed to equip Chinese enterprises with insights and strategies to effectively manage unannounced inspections. Mr. Fang Dongkui, Secretary General of CCCEU, delivered the opening remarks, while Ashurst LLP's Head of Public International Law & Investment Arbitration (based in Frankfurt) Arne Fuchs, Partner (based in Frankfurt) Michael Holzhäuser, and Partner (based in Madrid) Rafael Baena delivered keynote speeches. Moderating the webinar was Ms. Liang Linlin, Director of Communication and Research at CCCEU.

Mr. Fang noted that the FSR has been used five times since February of this year, all targeting Chinese enterprises. Particularly noteworthy are the unannounced raids conducted by the EU on April 23rd against the Dutch and Polish subsidiaries of a Chinese company. In response to this, CCCEU promptly sought expert advice and organised training sessions. The chamber will try its very best to safeguard the interests of Chinese enterprises in Europe.

Arne Fuchs outlined the significant impact of the FSR on Chinese enterprises, delving into the complexities and challenges of unannounced inspections. He highlighted the specific risks faced by Chinese firms and stressed the substantial stress and potential damage these inspections pose to businesses. Fuchs recommended meticulous preparation, both legally and strategically, for the FSR, including a thorough understanding of regulations, proactive planning for unannounced inspections, and the timely involvement of legal counsel when necessary.

In the training, Michael Holzhäuser addressed compliance concerns during unannounced inspections and strategies for navigating these high-pressure scenarios. He elucidated the EU's approach to conducting such inspections and their ramifications on day-to-day business functions, underscoring the significance of cooperation while safeguarding corporate interests. Holzhäuser elaborated on methods to mitigate the adverse effects of inspections, advocating for the formulation of comprehensive response plans and employee training to ensure lawful interaction with investigators. Furthermore, he provided case studies illustrating how enterprises successfully mitigated risks and damages during unannounced inspections.

Rafael Baena, connecting from Madrid, Spain, provided detailed insights into the legal framework governing unannounced inspections and their role in investigating FSR compliance within the EU. He outlined strategic approaches for enterprises in response to such inspections, emphasising the importance of thorough preparation, lawful cooperation with investigators, and safeguarding corporate information from unauthorised access.

More than 400 participants from a variety of companies and agencies joined the online training, spanning sectors such as finance, construction, ICT, logistics, automobiles, new energy, law firms, universities, think tanks, and media organizations. During the Q&A session, speakers addressed approximately 20 questions, touching on a broad spectrum of topics.