The spokesperson of the Ministry of Commerce answered questions from reporters regarding the determination that the practices related to the investigation of foreign subsidies in the European Union constitute inappropriate extraterritorial jurisdiction measures

Q: On May 15th, the Ministry of Justice issued a statement stating that the EU's use of the Foreign Subsidies Regulation to conduct cross-border investigations on Chinese entities constitutes "inappropriate extraterritorial jurisdiction measures". What is the comment of the Ministry of Commerce on this?

Answer: China has always opposed the EU's abuse of unilateral tools such as the Foreign Subsidies Regulation (FSR) to suppress Chinese enterprises. Recently, the European side has not only increased the frequency and scope of investigations into Chinese companies, but also upgraded the investigation into companies such as Tongfang Weishi to an in-depth investigation, and forced Chinese banking institutions to cooperate with the investigation, unreasonably demanding extensive and unrelated information within China. Several Chinese enterprises and banking institutions have been severely negatively affected in their normal investment and operation in Europe.

The Ministry of Commerce determined through investigation as early as January 2025 that the EU's FSR related practices constituted trade and investment barriers, and demanded that the EU correct the relevant practices, advocating for proper management of differences through dialogue. But the European side persists in its own way and is walking further and further down the wrong path.

Based on a thorough investigation, the Ministry of Justice and the Ministry of Commerce, in accordance with the "Regulations of the People's Republic of China on Combating Improper Extraterritorial Jurisdiction over Foreign Countries", have determined that the European side's cross-border investigation practices against relevant Chinese entities in the FSR investigation of Tongfang Weishi constitute improper extraterritorial jurisdiction measures, and require no organization or individual to implement or assist in the implementation of such measures.

The Chinese side reiterates its hope that the European Commission will quickly correct its erroneous practices, stop unreasonable suppression of Chinese companies, stop abusing FSR investigation tools, and provide a fair, just, and predictable business environment for Chinese companies to invest and operate in Europe. The Chinese side has always advocated for managing differences through dialogue and consultation, and hopes that the European side and the Chinese side will work together to resolve issues through friendly consultations. At the same time, we will closely monitor the relevant developments on the European side and take necessary measures to resolutely safeguard national security and the legitimate rights and interests of enterprises.