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EU Escalates Foreign-Subsidy Enforcement With Reported Temu Raid and Nuctech Probe

Brussels is wielding its Foreign Subsidies Regulation to scrutinize suspected state support for non‑EU firms that officials say distorts competition.

Overview

  • The European Commission confirmed an unannounced inspection under the Foreign Subsidies Regulation, and multiple reports say Temu’s Dublin headquarters were searched last week.
  • Separately, the Commission opened an in-depth investigation into Chinese airport-scanner maker Nuctech after earlier inspections in Poland and the Netherlands.
  • EU negotiators agreed new rules that make screening of inbound investments in sensitive sectors mandatory across the bloc.
  • Policymakers plan to scrap the €150 low‑value parcel duty exemption, targeting the surge of cheap e-commerce shipments into the EU.
  • China’s Chamber of Commerce to the EU denounced the actions as discriminatory and urged the Commission to halt what it calls excessive use of subsidy probes.