China Bars Nuctech Probe Compliance as EU Presses Foreign Subsidies Case

1 articles · Updated · Bloomberg · May 15

China’s Ministry of Justice said the EU cannot enforce parts of its Nuctech investigation in China, calling the bloc’s use of the foreign subsidies regulation improper extraterritorial jurisdiction.
The ministry said Brussels demanded broad, unnecessary information held inside China during its probe of the security equipment maker, and ordered parties not to comply with those measures.
Beijing said the EU requests violate international law and basic norms of international relations, sharpening a legal and political clash over how far the bloc can reach in subsidy investigations involving Chinese companies.

With China and the EU locked in a legal standoff over Nuctech, how can global firms avoid getting crushed between conflicting laws?

Could escalating regulatory battles between China and the EU trigger a wider economic decoupling, and what would that mean for global supply chains?