China

The European Commission raided Nuctech's Dutch and Polish offices in April 2024 under the Foreign Subsidies Regulation and formally escalated to an in-depth investigation in December 2025, marking the first time the Commission has used that tool's ex officio track. The probe targets alleged Chinese state support including government grants, preferential loans, and tax concessions, with Nuctech equipment documented in 26 of 27 EU member states across airports, ports, and border crossings. The case establishes a legal precedent requiring EU subsidiaries of foreign-state-linked firms to surrender data during FSR inspections, and it opens a path to procurement remedies across the bloc.

China's first State Council-level framework governing outbound direct investment took effect July 1, 2026, replacing decades of fragmented ministry guidelines with a mandatory tiered review system that requires pre-clearance for investments touching critical technology, infrastructure, and cross-border data flows. Article 15 grants authorities power to block, restructure, or compel divestment of deals deemed national security risks, while Article 14 links investment approval directly to foreign-exchange registration and cybersecurity compliance. No deals have been publicly named as rejected or restructured since enactment, and MOFCOM's implementing rules defining specific thresholds and technology lists remain pending, leaving the precise scope of mandatory pre-clearance unresolved.