Chinese cargo scanning firm taking European Commission to court over Dutch, Polish raids

The Chinese cargo scanning company Nuctech is taking the European Commission to court over the raids on the company’s Dutch and Polish branches that took place earlier this year. The European Commission ordered the raids because it suspected that Nuctech was receiving illegal state aid from China. The company denied the allegations and has called the raids unjustified.

The European Commission had not responded to Nuctech’s complaint by Tueday afternoon. The company demanded an end to the investigation into state aid because it “could potentially harm Nuctech.”

The case was filed as an appeal with the General Court of the European Union Court of Justice. It could take years before a ruling is delivered.

Nuctech supplies cargo scanning equipment to the Port of Rotterdam and to Schiphol Airport, as well as technical equipment used to communicate with the equipment. Their products have been banned in the United States since 2014 due to safety concerns.

The equipment can be found widely in Europe. The Associated Press concluded that 26 of the 27 EU member states use Nuctech equipment, according to a 2022 investigation by the news agency.

There are four official European Commission investigations into Nuctech. This should determine whether the company has an unfair competitive advantage over Western competitors, possibly with the help of Chinese State support.

The Financieele Dagblad reported last week that the Dutch Customs office selected the company as a possible supplier in a new tender for vehicle scanners. Because there is no evidence yet against Nuctech which demonstrates that national security is at stake, the company cannot simply be excluded from tender procedures.

The ongoing investigations are meant to develop evidence to determine if this is the case.