China criticises EU subsidy rules, warns of countermeasures

China has accused the European Union of misusing unilateral trade instruments to pressure Chinese companies, escalating tensions over cross-border investigations targeting Chinese firms operating in Europe.

A spokesperson for China’s Ministry of Commerce (MOFCOM) said on May 15 that Beijing “has consistently opposed the EU’s abuse of unilateral tools such as the Foreign Subsidies Regulation (FSR) to suppress Chinese companies,” adding that China will closely monitor developments and “take necessary measures to firmly safeguard national security and the legitimate rights and interests of Chinese companies," Caliber.Az reports via foreign media. 

The remarks came in response to questions about a notice issued by China’s Ministry of Justice, which said the EU’s cross-border investigations under the FSR amounted to improper extraterritorial jurisdiction.

According to the spokesperson, the European Union has recently “increased the frequency of investigations targeting Chinese enterprises and expanded the scope of such investigations,” while also escalating probes into companies including Nuctech. The spokesperson further alleged that EU authorities have been “coercing Chinese banking institutions to cooperate with the probes” and demanding extensive information from within China that is unrelated to the investigations.

“The normal investment and business operations of multiple Chinese enterprises and banking institutions in Europe have been seriously negatively affected,” the spokesperson said.

Beijing also cited an earlier assessment by its Ministry of Commerce, which concluded in January 2025 that EU practices under the FSR constituted “trade and investment barriers,” urging Brussels to resolve disputes through dialogue. However, the spokesperson said, “the EU has persisted in this course and gone further down the wrong path.”

The statement added that China’s Ministry of Justice and Ministry of Commerce had jointly concluded that EU investigative measures in relation to Nuctech constituted improper extraterritorial jurisdiction under China’s legal framework governing countermeasures against foreign legislation.

The spokesperson emphasized that “no organization or individual shall carry out or assist in carrying out such measures,” and urged the European Commission to revise its approach.

MOFCOM reiterated its call for Brussels to “promptly correct its wrong practices, stop its unreasonable suppression of Chinese enterprises, cease abusing FSR investigative tools, and provide a fair, just and predictable business environment for Chinese enterprises operating and investing in Europe.”

“China has consistently advocated managing differences through dialogue and consultation, and hopes the EU will work with China in the same direction to resolve issues through friendly consultations,” the spokesperson said. “At the same time, China will closely monitor relevant developments on the EU side and take necessary measures to firmly safeguard national security and the legitimate rights and interests of Chinese companies.”

By Sabina Mammadli