CCCEU Statement on the European Commission's Recent Enforcement Actions Against Chinese-invested Enterprises under the Foreign Subsidies Regulation (FSR)

11 December 2025, Brussels

The China Chamber of Commerce to the EU (CCCEU) notes that the European Commission has recently taken a series of intensive actions against Chinese-invested enterprises under the framework of the Foreign Subsidies Regulation (FSR). These include the Commission's sudden announcement on 11 December of initiating an in-depth investigation into a Chinese company, and—according to media reports—a "dawn raid" carried out last week on a Chinese-invested e-commerce company operating in the EU. The CCCEU expresses strong dissatisfaction and firm opposition to the Commission's continued, targeted, and excessive use of FSR investigative tools against Chinese-invested enterprises.

It must be stressed that the investigative power that the FSR grants to the Commission is not unlimited or totally discretionary, particularly in terms of the investigations initiated on an ex officio basis, beside the notification procedures related to concentrations and bids in public procurement activities. The Commission should not abuse its investigative power and the FSR tool to unreasonably disrupt or interfere into the normal business activities of EU-based enterprises established by foreign investors.

Moreover, the "foreign subsidies" definition under the FSR remains ill-defined and ambiguous. The Commission additionally interpreted the term in even broader sense in the implementation regulation and guidelines published by itself to allow penetrating corporate ownership structures to trace so-called "financial contributions" back to parent companies in China. As a result, the scope and nature of what the Commission classifies as "foreign subsidies" may significantly exceed reasonable boundaries under existing international trade and anti-subsidy rules.

We also believe that the Commission has failed to uphold the principles of non-discrimination in its FSR enforcement. Since the FSR came into force, the majority of investigations launched under it have targeted Chinese enterprises or Chinese invested companies in Europe. In the field of public procurement, Chinese companies have repeatedly been forced to withdraw from projects due to FSR investigations. A growing number of ex officio investigations also predominantly concern Chinese companies across sectors such as wind turbines, security inspection equipment, new battery vehicles, and e-commerce platform. This demonstrates that Chinese enterprises have become the primary targets of FSR enforcement, in a clearly disproportionate and abusive manner, completely incompatible with the public announcement made by the Commission in the legislative process that all countries will be treated equally and non-discriminatory under the FSR enforcement.

Furthermore, the Commission's initiation of FSR investigations lacks transparency and fails to provide adequate and credible justifications or evidence. While Chinese companies attach great importance to compliance, the reversal of the burden of proof—combined with conflicts between FSR requirements and China's data export regulatory obligations—has dramatically increased compliance costs for Chinese enterprises.

Earlier this year, China's Ministry of Commerce determined that the Commission's FSR enforcement has created barriers to investment and trade, with direct and indirect losses to Chinese enterprises amounting to approximately EUR 2.1 billion. According to the CCCEU's 2025 survey of 205 Chinese enterprises and organization operating in Europe, 63% reported that their business operations had been affected by the FSR enforcement actions—including direct disruptions, lost commercial opportunities, or operational risks stemming from actual or potential investigations. Meanwhile, 51% of respondents indicated that the FSR had caused indirect harm to their commercial reputation and market perception.

In light of the above, the CCCEU urges the European Commission to enforce the FSR with prudence, based on solid evidence instead of speculation and to immediately cease discriminatory and disproportionate enforcement actions against Chinese enterprises. The EU should reduce excessive compliance burdens, uphold a fair, impartial, and transparent business environment for foreign investors, and maintain an open attitude conducive to the healthy and stable development of China-EU investment and trade relations.