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flag The EU probes Chinese firms over alleged state subsidies, sparking trade tensions and internal policy divides.

flag The European Commission has launched in-depth investigations into Chinese firms Nuctech and Temu under its Foreign Subsidies Regulation, alleging state support distorts EU markets. flag The China Chamber of Commerce to the EU condemned the probes as disproportionate and discriminatory, citing widespread operational disruptions and reputational harm to Chinese businesses. flag A 2025 survey found over half of 205 Chinese firms in Europe reported disruptions, while China’s Ministry of Commerce called the FSR a trade barrier. flag The EU is also advancing mandatory screening of foreign investments in sensitive sectors and expanding anti-dumping probes, but internal divisions persist, with France pushing for tariffs and Germany urging caution, undermining a unified China strategy.

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