Brussels, December 11, 2025 —The European Commission (EC) has opened an in-depth investigation under the Foreign Subsidies Regulation into the activities of Chinese threat detection systems supplier Nuctech, citing concerns that state support from China may have distorted conditions in the EU internal market.
The probe focuses on Nuctech’s production and sale of security and inspection scanners used at airports, ports, and border crossings, as well as related services provided within the European Union. The Commission said preliminary findings suggest that Nuctech may have benefited from foreign financial support that strengthened its market position in ways other suppliers could not reasonably match.
“Threat detection systems, including security and inspection scanners used at ports and airports, play an essential role in ensuring that Europe is open, yet secure. So we want a level playing field on the market for such systems, keeping fair opportunities for competitors, customers such as border authorities,” Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition said.
Preliminary Findings
The investigation follows unannounced inspections carried out in April 2024 at Nuctech premises in Poland and the Netherlands. Based on the information gathered, the Commission has identified potential foreign subsidies in the form of direct grants, preferential tax treatment, and subsidized financing, including loans.
According to the Commission, these measures may have enabled Nuctech to submit bids in public tenders at prices or under conditions that competitors could not replicate, particularly for large-scale security scanning systems and associated services.
The opening of the in-depth investigation does not prejudge the final outcome.
Corporate Structure Under Review
Nuctech is headquartered in China and forms part of the Tsinghua Tongfang Group, a state-controlled entity ultimately overseen by the Chinese government. Within the EU, the group operates through subsidiaries including Nuctech Warsaw in Poland and InsTech Netherlands.
Tsinghua Tongfang is active in sectors ranging from nuclear technology applications to information systems and environmental technologies, with threat detection systems representing a key area of activity.
The Nuctech investigation marks the first in-depth ex officio case launched under the regulation.
Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_25_3019
