Nuctech, a Chinese security equipment company, evolved from a state-backed start-up to a global leader in border security technology. This progress has placed the company at the center of trade and subsidy disputes.

In April 2024, European Union investigators raided Nuctech’s offices in Europe. They seized laptops, mobile phones, and documents. The investigation seeks to find out if Nuctech used unfair advantages in competing for contracts to install security systems at checkpoints in various European nations.

Nuctech’s reach is extensive. Its devices are present at airports and seaports in over 170 countries. The company has faced numerous controversies, including corruption investigations in Namibia and the Philippines, data security critiques in Canada, and inclusion on a U.S. national security blacklist.

European concerns about Chinese company dominance are rising. Nuctech currently serves as a focus for political leaders aiming to safeguard local enterprises and jobs. There are growing fears over possible surveillance vulnerabilities in certain industries.

The European Commission is investigating if Chinese state support affords these companies an unfair advantage. A new legal framework now permits the examination of public bids by Nuctech and other Chinese manufacturers in sectors like electric vehicles and solar panels.

China has labeled the probes as “illegal” and an “unjustified suppression” of its firms. Following the raids, the European Commission initiated a thorough inquiry that might result in divestiture or bans on the company. China’s Ministry of Justice responded by instructing Nuctech not to cooperate.