- The European Union is investigating Chinese security firm Nuctech amid concerns subsidies from Beijing gave it an unfair market advantage over local EU firms.
- The European Commission said handouts could have bolstered Nuctech’s strength in Europe to the detriment of rivals in the market.
- The EU has powers to vet subsidies that can hamper European markets, and could issue fines, orders to suspend tenders, or outright blocks of takeovers by state-funded firms.
Chinese security firm Nuctech has been hit by a full-scale European Union investigation amid concerns subsidies from Beijing gave it an unfair market advantage over local EU firms.
The European Commission said handouts in the form of “grants, preferential tax measures, and preferential financing” could have bolstered Nuctech’s strength in Europe to the detriment of rivals in the market.
The probe means the company — which specializes in the production and sale of threat detection systems as well as related services — will be under pressure to file commitments to fix any harm to fair competition.
“We want a level playing field on the market for such systems, keeping fair opportunities for competitors, customers such as border authorities,” said EU antitrust chief Teresa Ribera.
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We need to do get a buy European act, it’s not normal to see a government service like customs buying device from Nuchtech rather than local competitor. I want my tax to finance my job, not some foreign companies
I fully agree. That’s basically what Europe had in the 2000’s when public funds (particularly from Spain and Germany) funded primarily Chinese solar companies.