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China Urges European Commission to Immediately Cease Unwarranted Suppression of Foreign-Invested Companies, Exercise Caution When Using FSR Tools

By Global Times|Dec 19,2025

The photo features He Yadong, the spokesperson for the Ministry of Commerce, People's Republic of China. (Photo/Global Times)

Beijing - China strongly opposes the European Commission (EC)'s recent intensive foreign subsidies regulation (FSR) investigations into multiple Chinese companies, and vowed to take necessary measures to safeguard the legitimate rights and interests of Chinese companies, a spokesperson for China's Ministry of Commerce said on Thursday, according to the Xinhua News Agency. 

China has taken note of the recent intensive investigations launched by the EC against Chinese companies under the FSR, He Yadong, a spokesperson for the ministry, said at a regular press conference.

These include in-depth investigations into CRRC Corporation and Nuctech, as well as unexpected on-site inspections of Chinese digital platforms. Such actions are egregious and exhibit clear targeting and discriminatory intent, said the spokesperson.

"China strongly opposes these measures. We urge the European side to immediately cease the unwarranted suppression of foreign-invested companies, including those from China, and to exercise caution when employing FSR investigative tools, in order to create a fair, just and predictable business environment for companies operating in Europe," He said.

The FSR investigations severely impact Chinese companies' operation and investment in Europe, He said.

In January, the MOFCOM announced that the European Union (EU)'s practices in its foreign subsidy investigations against Chinese enterprises have constituted trade and investment barriers following a probe.

The MOFCOM pointed out that the EU's investigations consisted of inappropriate penalties and the reversal of the burden of proof, and lacked procedural transparency and legitimacy.

Recently, these issues have not only remained unresolved but have also worsened. In particular, the definition of "foreign subsidies" is overly broad and ambiguous, far exceeding the reasonable scope of international rules and common practices, the spokesperson said.

This has not only severely affected the normal operations of Chinese enterprises in Europe but has also introduced uncertainty into China-EU bilateral economic and trade cooperation, He said.

In the January announcement, the MOFCOM determined that the EC's FSR enforcement has created de facto barriers to investment and trade, with cumulative direct and indirect losses to Chinese enterprises amounting to about 2.1 billion euros ($2.46 billion), according to the China Chamber of Commerce to the EU (CCCEU), a Chinese business association in Europe.

According to a 2025 CCCEU survey of 205 Chinese enterprises and institutions operating in Europe, 63 percent reported that their business operations had been affected by the FSR - including direct disruptions, lost commercial opportunities, or operational risks stemming from actual or potential investigations. Also, 51 percent of respondents indicated that the FSR had caused indirect harm to their commercial reputation and market perception.

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