The European Commission has opened an in-depth investigation to assess, under the Foreign Subsidies Regulation (‘FSR'), the activities of 
Nuctech (威视) in the production and sale of threat detection systems (‘TDS') and the provision of related services within the EU. The Commission has preliminary concerns that Nuctech may have been granted foreign subsidies that could distort the EU internal market.
Nuctech is a subsidiary of Tsinghua Tongfang, which is partially owned by state-owned China National Nuclear Corporation. Nuctech is active worldwide in the manufacturing and sale of TDS, such as security and inspection scanners for airports, ports, or customs points in railways or roads located at borders, as well as the provision of related services.
Nuctech indirectly controls Nuctech Warsaw, based in Poland, and InsTech Netherlands, formerly known as Nuctech Netherlands, based in the Netherlands.
The Commission started this investigation on its own initiative (ex officio) in April 2024 by conducting inspections at the EU premises of Nuctech in Poland and the Netherlands. Based on this preliminary investigation, a number of measures granted by China to Nuctech may constitute foreign subsidies distorting the internal market.
The possible foreign subsidies take the form of grants, preferential tax measures, and preferential financing in the form of loans. The Commission has preliminary concerns that the foreign subsidies may have improved Nuctech's competitive position in the internal market and may have negatively affected competition. This may have happened through Nuctech offering, in tender contracts, prices and conditions that cannot be reasonably matched by other market players, for the supply of large TDS and for the provision of TDS-related services.
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ec.europa.eu/commission/pre
Nuctech (威视) in the production and sale of threat detection systems (‘TDS') and the provision of related services within the EU. The Commission has preliminary concerns that Nuctech may have been granted foreign subsidies that could distort the EU internal market.
Nuctech is a subsidiary of Tsinghua Tongfang, which is partially owned by state-owned China National Nuclear Corporation. Nuctech is active worldwide in the manufacturing and sale of TDS, such as security and inspection scanners for airports, ports, or customs points in railways or roads located at borders, as well as the provision of related services.
Nuctech indirectly controls Nuctech Warsaw, based in Poland, and InsTech Netherlands, formerly known as Nuctech Netherlands, based in the Netherlands.
The Commission started this investigation on its own initiative (ex officio) in April 2024 by conducting inspections at the EU premises of Nuctech in Poland and the Netherlands. Based on this preliminary investigation, a number of measures granted by China to Nuctech may constitute foreign subsidies distorting the internal market.
The possible foreign subsidies take the form of grants, preferential tax measures, and preferential financing in the form of loans. The Commission has preliminary concerns that the foreign subsidies may have improved Nuctech's competitive position in the internal market and may have negatively affected competition. This may have happened through Nuctech offering, in tender contracts, prices and conditions that cannot be reasonably matched by other market players, for the supply of large TDS and for the provision of TDS-related services.
wsj.com/world/europe/e
ec.europa.eu/commission/pre
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Byron Wan
@Byron_Wan
in an embarrassing twist for EU, Italian customs authorities will award more than €15 million in EU funds to Nuctech for cargo scanning equipment, even as the state-controlled company is investigated for possible violations of the bloc’s foreign subsidies regulations. x.com/Byron_Wan/stat…