Published：May 15, 13:32Last updated：May 22, 03:46

China Condemns EU Trade Probes as Overreach

May. 15, 2026 13:32

On May 15, 2026, China's Ministry of Justice, in collaboration with the Ministry of Commerce, identified the EU's investigation into Chinese entities under its Foreign Subsidies Regulation as improper extraterritorial jurisdiction. The announcement prohibits any organization or individual from enforcing these measures, emphasizing China's commitment to protecting its sovereignty and the rights of its citizens and entities.

Summarized

20News

7Media

May. 22, 2026 03:43

On May 22, Li Chao, spokesperson for the National Development and Reform Commission, stated that China supports domestic tech companies in integrating into global innovation networks and engaging in international cooperation. The commission has never prohibited Chinese tech companies from accepting foreign investment, provided that foreign investments comply with Chinese laws and do not harm national security. China continues to implement measures to improve the business environment and attract foreign investment.

May. 22, 2026 03:46

On May 22, Li Chao, Deputy Director of the Policy Research Office and spokesperson for the National Development and Reform Commission, stated that China supports its tech companies in integrating into the global innovation network and engaging in mutually beneficial international cooperation. He emphasized that China has never prohibited its tech companies from accepting foreign investment, but foreign investments must comply with Chinese laws and regulations and not harm national security or interests. The commission aims to deepen the implementation of foreign investment laws and create a market-oriented, law-based, and internationalized business environment.

China has escalated its criticism of the European Union's trade investigations, with multiple government agencies labeling the EU's actions as improper extraterritorial jurisdiction. The Ministry of Justice and Ministry of Commerce jointly condemned the EU's Foreign Subsidies Regulation probes targeting Chinese companies like Tongfang Weishi, prohibiting compliance with these measures. The dispute centers on EU demands for sensitive business information and perceived targeting of Chinese investments in Europe. CCTV+2

🚨 Sovereignty Protection

China's Ministry of Justice issued an immediate ban on organizations or individuals cooperating with EU investigations, framing the measures as violations of international law. The announcement specifically referenced the Tongfang Weishi case as an example of cross-border regulatory overreach. This marks China's most direct legal countermeasure to date against foreign trade investigations. People's Daily+1

💼 Trade Tensions Escalate

Commerce Ministry spokesperson He Yadong warned of retaliatory measures if the EU proceeds with new trade tools targeting Chinese "overcapacity." China argues the EU's proposed 30-40% supplier diversification rule and steel import restrictions (50% tariffs) constitute double standards, given Europe's own trade surpluses in sectors like automotive and wine. The Japan Times+2

🌐 Global Supply Chain Impact

Officials emphasized how EU actions could disrupt international supply chains, citing China's €16.8 billion 2025 investment in Europe. The National Development and Reform Commission simultaneously reaffirmed China's openness to foreign investment in tech sectors, provided compliance with national security laws. China.org+2

⚖️ Legal and Diplomatic Channels

China continues pushing for dialogue while preparing countermeasures. The Commerce Ministry highlighted contradictions between EU actions and multilateral trade rules, urging Brussels to correct its approach to avoid further escalation. Both sides appear entrenched, with China framing the conflict as a sovereignty issue and the EU focusing on market fairness. People's Daily+2

He YadongEuropean UnionTongfang WeishiMinistry of Commerce ChinaForeign Subsidies Regulation