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EU launches first "surprise inspections" under FSR (foreign subsidy regulation) against Chinese surveillance equipment manufacturers

The Chinese Chamber of Commerce in the European Union revealed that on April 23, the offices of a Chinese company in Poland and the Netherlands were subject to "unannounced inspections" by the European Commission. This type of surprise inspection is also translated as a "dawn raid" and is the first time the European Commission has publicly confirmed that it conducted such an inspection on a company under the Foreign Subsidies Regulation (FSR). In the past two months, the EU has launched four relevant investigations under the FSR, all against Chinese companies. The industries involve solar power, wind turbines and electric trains.



The European Commission is conducting a surprise inspection of a company engaged in the production and sale of safety devices in the EU, according to the news released by the EU Commission. The EU reported that there would be "indications" that the company under inspection received foreign subsidies that distort the internal market under the FSR. Sources said Commission officials were accompanied by counterparts from member states' national competition authorities during the inspection. Euronews said on the 23rd that because the investigation is still at a preliminary stage, the European Commission has not disclosed the name of the company or the country involved. The Chinese Chamber of Commerce in the European Union issued a statement on its public WeChat account, saying it understood that the companies involved were Chinese companies.

The statement said that on April 23, the offices of a Chinese company in Poland and the Netherlands were suddenly subjected to an unnotified subsidy investigation by the European side. The Chamber of Commerce specified that law enforcement officers authorized by the European Commission went unannounced to the company's offices in both countries that morning, took control of the company's computer equipment and employees' cell phones, examined office documents and requested relevant data. Hong Kong's South China Morning Post quoted sources in the 23rd saying the company is engaged in the production of surveillance equipment. In the past two months, the EU has launched four relevant investigations under the FSR, all against Chinese companies. The industries involve solar power, wind turbines and electric trains.


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