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Nuctech Denies Receiving Chinese State Subsidies in EU Probe

BRUSSELS, Aug 13 (Reuters) - Chinese security firm Nuctech reiterated on Tuesday that it had not received Chinese state subsidies, after the EU General Court on Monday rejected its request to temporarily suspend the European Commission’s decision to inspect the company.

"Nuctech has not received any subsidies from the Chinese state and will continue defending its reputation as an independent business operator," it said in a statement.

"What’s more striking is the Court’s insistence on Nuctech breaking the Chinese laws to illegally share data stored in China. Nuctech has repeatedly informed the Commission and the Court that we are prohibited from providing such data as it violates the PRC law. Such stance raises questions on the legal and political impartiality of the case."

The Luxembourg-based General Court, Europe's second-highest court, ruled that the EU Commission can investigate and request information from all businesses operating in the EU, regardless of whether they are controlled by member states or third states, to assess potential EU law violations.

Nuctech makes body and luggage scanners for airports and ports in more than 170 countries and was among Chinese tech companies blacklisted by the U.S. Bureau of Industry and Security, Commerce in 2020, calling them security threats.

In June, it took the European Commission to court over raids at its Dutch and Polish offices, saying there was no evidence to support allegations it benefited from illegal state support.

Reporting by Charlotte Van Campenhout; Editing by Susan Fenton

Source: Reuters


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