Brussels “raids” Chinese bagage scanner plant in Rotterdam

The European Commission has carried out “inspections” at the offices of Chinese baggage scanner maker Nuctech in the Netherlands and Poland as part of an investigation into illegal state support.

Nuctech makes equipment to scan containers and baggage in the Netherlands and Brussels suspects it receives financial support from the Chinese government, which would be against EU rules.

“I can say nothing about the investigation,” board director Robert Bos told broadcaster NOS. “It is confidential. But we are cooperating fully.” The company’s Polish operation focuses on software.

According to the Financial Times, this is the first time Brussels has used its new anti-foreign subsidy rules to justify a raid on a company. The commission did not mention the company by name, but said in a statement it had “indications” the company “may have received foreign subsidies that could distort the internal market in line with the Foreign Subsidies Regulation”.

Nuctech has also been dogged by security concerns. The US has added the company to its trade restriction list because of “its involvement in activities contrary to the national security interests of the US” and has warned that “several countries have raised concerns about the security risks posed by Nuctech equipment . . . given the company’s control by the Chinese government”.

In late 2022 more than 50 MEPs sent a letter warning the European Commission that installing Nuctech equipment at Europe’s borders would put national security at risk and could allow information on goods and travelers to fall into the hands of the Chinese government.

The equipment is also in use at Schiphol airport and Rotterdam port.

Also on Wednesday, the European Commission launched a probe to examine how China favours its domestic companies in tenders for medical devices and to consider some form of retaliation.

“Evidence … indicates that China’s procurement market for medical devices has gradually become more closed for European and foreign firms, as well as for products made in the EU,” the commission said in a statement.