European Commission experts carry out surprise checks on several Chinese companies in the security sector in Poland and the Netherlands

A Chinese security equipment company was subject to scrutiny by the European Commission on Tuesday, under the Regulation on foreign subsidies (FSR). The company is the subject of an investigation launched by the EU executive.

The FSR has been applied since July 2023 and its objective is ensure a level playing field for all companies that operate in the single market.

The EU Commission carried out the inspections in two member states together with their national counterparts, but has not revealed the name of the company nor its origin. However, according to sources familiar with the case, the investigation was initiated by the Commission and was not a response to a complaint.

The Chinese Chamber of Commerce in the EU (CCCEU) has revealed that it was informed of an unannounced raid on the facilities of a Chinese company in the Netherlands and Poland.

“The CCCEU expresses its deep concern about the EU’s unannounced incursions towards Chinese companies in the EU,” the chamber said in a statement issued late Tuesday.

According to CCCEUlaw enforcement agencies, They confiscated the company’s computer equipment and mobile phones of employees, examined office documents and demanded access to relevant data.

To date, the European Commission has opened several investigations into Chinese companies under the regulation, and today the EU executive launched an investigation into public procurement of medical devices in China.

According to the statement, the Chinese Chamber of Commerce (CCCEU) urges the European side to protect the rights and interests of foreign companies in the EU, arguing that these actions send a ‘damaging message’ to all non-EU companies who do business on the block.

If the EU Executive finds sufficient evidence of possible distortions of the single market caused by foreign subsidiescould start an in-depth investigation.