The European Commission has launched an in-depth investigation into the activities of Nuctech, a Chinese company operating in the threat detection systems (TDS) sector within the European Union. The probe is being conducted under the Foreign Subsidies Regulation (FSR), which aims to address potential distortions in the EU internal market caused by foreign subsidies.
Nuctech, headquartered in China and part of the Tsinghua Tongfang group, manufactures and sells security and inspection scanners used at airports, ports, customs points on railways or roads at borders. The company also provides related services across global markets.
The Commission initiated this investigation independently in April 2024 after conducting inspections at Nuctech’s premises in Poland and the Netherlands. According to preliminary findings, several measures provided by Chinese authorities—such as grants, preferential tax arrangements, and loans—may constitute foreign subsidies that could give Nuctech an unfair advantage over competitors within the EU.
The Commission expressed concern that these subsidies may have allowed Nuctech to offer prices and contract conditions for large TDS supplies and services that other market participants cannot reasonably match. This situation could potentially harm competition in the EU internal market.
“In its in-depth investigation, the Commission will assess whether the preliminary findings are confirmed,” stated officials. “The opening of an in-depth investigation does not prejudge the outcome of the investigation.”
The procedure focuses on Tsinghua Tongfang and its subsidiaries active within Europe’s TDS sector. Tsinghua Tongfang is a state-controlled entity based in China with business interests spanning nuclear technology applications—including those relevant for TDS—the information industry, energy conservation, and environmental protection. Its subsidiary Nuctech Technology controls both Nuctech Warsaw (Poland) and InsTech Netherlands (formerly Nuctech Netherlands).
Under FSR rules effective since July 2023, the Commission can initiate such investigations if there are sufficient indications that a foreign subsidy distorts competition within Europe’s internal market. Outcomes may include accepting commitments from companies to remedy any distortion, imposing corrective measures, or issuing a no-objection decision.
More details about this case can be found on the Commission’s competition website or through its public case register under case number FS.100068.
Arianna Podesta, Deputy Chief Spokesperson for the European Commission; and Luuk De Klein, Press Officer; are available for further inquiries.