China's Justice Ministry Deems EU Foreign Subsidies Regulation Enforcement Unlawful Extraterritorial Jurisdiction on May 15

On May 15, China’s Ministry of Justice deemed the European Union’s enforcement of its Foreign Subsidies Regulation (FSR) against Chinese entities to constitute unlawful extraterritorial jurisdiction. According to the Ministry of Commerce, China has consistently opposed the EU’s misuse of unilateral tools like FSR to suppress Chinese enterprises. Recently, the EU expanded investigation frequency and scope, escalating scrutiny of companies including Hikvision, and has compelled Chinese banks to participate in investigations while demanding unrelated domestic information. These actions have severely impacted Chinese enterprises’ and financial institutions’ normal investment and operations in Europe.