People’s Daily published an article criticizing recent European Union investigations into Chinese companies, including Nuctech, under the EU’s Foreign Subsidies Regulation (FSR), describing them as “improper extraterritorial jurisdiction measures.” The dispute follows earlier tensions involving the EU’s proposed Net-Zero Industry Act and revisions to cybersecurity-related legislation, highlighting growing China–EU trade frictions.
The article describes the FSR as an increasingly protectionist and unilateral tool. It accuses EU authorities of compelling Chinese companies and banks to provide sensitive data located in China, broadly defining Chinese industrial support policies as “market-distorting subsidies,” and creating a dilemma in which compliance with EU demands could violate China’s data security laws, while refusal could lead to heavy fines or exclusion from the European market.
The article states that expanded FSR investigations not only disrupt Chinese companies operating in Europe, but also harm European interests, particularly in electric vehicles, wind power, and solar energy sectors tied to Europe’s green transition goals.
It also links the issue to broader concerns over “long-arm jurisdiction,” describing extraterritorial measures as tools historically used by hegemonic powers (indirectly referring to the U.S.) against foreign competitors. Similar practices, it notes, had previously harmed European manufacturers and financial institutions, and applying them against Chinese firms could undermine China–EU economic and trade cooperation.
Source: People’s Daily, May 25, 2026
https://world.people.com.cn/n1/2026/0525/c1002-40726885.htm