Chinese firm on EU radar in the Netherlands and Poland

Chinese China EU Flags

Various countries worldwide have accused China of espionage. China's common modus operandi is to exploit the business reach of its homegrown tech companies to extract sensitive information from foreign lands.

This time, the European Union has been proactive in warding off any such threat and has raided offices of a Chinese security equipment company, Nuntech, in Poland and the Netherlands. China is perplexed over an unexpected visit by the EU law enforcers to Nuntech’s offices.

The EU officials had been keeping a close watch over Nuntech operations. They had their reasons to doubt the company and its ability to procure unfair state subsidies in both countries.

China Chamber of Commerce to the EU (CCCEU) has found it deplorable that its company was subjected to such inspections and criticised Brussels for not making the company or the Chinese authorities aware of any issues whatsoever.

While expressing dissatisfaction, Beijing has accused Brussels of disrupting fair competition, undermining trade relations, and damaging the confidence of Chinese firms operating under the EU's ambit.

“The Chinese side believes that the EU’s unannounced inspections interfere with the order of fair competition in the market, clearly jeopardise the positive atmosphere of trade and economic cooperation between China and the EU, and strike a strong shock to the confidence and sense of security of all foreign companies in the EU, including Chinese ones,” the mission said.

“It also highlights the further deterioration of the EU’s business environment and sends an extremely negative signal to all foreign companies operating in the EU. Protectionism cannot bring prosperity, and suppressing others will only weaken the competitiveness of one’s own.”

The Chinese mission to the EU wants European officials to follow their commitment to an open market, be fair in principle, and stop making excuses to trap, suppress, and impede Chinese firms. Beijing hopes that cooperation and exchanges with the EU should be performed openly, fairly, and equitably.

CCCEU further added, “The European side manifested its intention to weaponise the Foreign Subsidies Regulation as a tool to suppress lawfully operating Chinese companies in Europe. The CCCEU expresses its strong dissatisfaction with the European side’s raids on companies set up by Chinese enterprise in the EU without prior notice and without solid evidence.”

Nuntech has been developing scanning devices for airports and border security patrols and has pledged its full support in the EU investigations to defend its reputation as an independent economic entity.

The European Commission has undertaken these raids as part of its initial investigation process after accumulating enough evidence against the Chinese firm that hints that the company might have received kickbacks and state subsidies that can affect the current market structure.

The raids were the first action taken by the commission since it adopted the Foreign Subsidies Regulation in July last year amid concerns about market distortions caused by foreign subsidies.

EU has now been relentlessly probing Chinese firms involved in the manufacturing of electric vehicles and medical equipment. Since the passing of the foreign subsidy regulation by the EU, Chinese firms are under the radar and are found to be in direct violation of the norms.

In Poland and the Netherlands, Nuntech has been accused of receiving subsidies that undermine the attempts of other foreign companies bidding for tenders or products or services in the EU market.

The foreign companies competing directly with China feel that since the EU has subjected Chinese firms to scrutiny, Beijing would also make them undergo similar ordeals in China. The EU investigation on the Chinese firm also came before an upcoming visit by Xi Jinping to Europe, which would impact EU-China bilateral trade agreements.

It seems EU has now finally woken up and understands how Beijing would use these trade agreements as a bargain chip or a sort of leverage over Europe.

China would like to dominate how its companies are trading globally but they mostly avoid following rules prescribed by other nations. Moreover, Chinese companies are often found involved in spying and transferring sensitive information to their bosses sitting in the homeland.

Experts feel that this is also a great opportunity for other rival countries like India and the United States to make their presence felt in emerging European market. These foreign companies would now have to face heightened regulations by the EU and tick all the boxes in order to scale up their operations in Europe.

EU will obviously look for trade partners beyond China and there is an opportunity here for the grabs. Foreign companies can outsmart China by filling all the gaps that Chinese companies have left.

They need to better assess the situation and promote trade talks at a national level that can finally culminate into new trade pacts. The target sectors would now be medical equipment, electric vehicles, and silicon chips to be exploited by these foreign companies.

READ MORE: Maldives Hosts Turkish Warship Amid Strained Ties with India.

No Comments Yet

Leave a Reply

Copyright Greekcitytimes 2024