Nuctech has emerged as a key player in global border-security technology. Originating as a state-backed Chinese start-up, it now faces significant challenges due to ongoing trade disputes.
The 2024 Raids
On an April morning in 2024, European investigators raided Nuctech’s offices. They seized laptops and employees’ mobile phones, searching for evidence of competitive advantages in EU markets. This involved their role in installing X-ray and explosive detection systems at key border points.
Global Footprint and Controversies
Nuctech operates in over 170 countries, providing equipment to airports and seaports. However, it faces scrutiny. Allegations of corruption in Namibia and the Philippines have surfaced. Canada has raised data security concerns. In the U.S., Nuctech is on a national security blacklist.
European Concerns
In Europe, there’s increasing frustration over the strong presence of Chinese companies like Nuctech. Politicians are under pressure to safeguard local businesses and jobs. Concerns relate to the security vulnerabilities of certain industries.
Legal Actions and Reactions
The European Commission is actively investigating whether Chinese government support has given companies like Nuctech an unfair advantage. This scrutiny extends to other Chinese manufacturers in sectors like electric vehicles, solar panels, and wind turbines.
China has labeled these investigations as “illegal” and claims they unfairly target Chinese enterprises. Since 2024, the European Commission has deepened its investigation into Nuctech, which may result in divestments or bans. In response, China’s Ministry of Justice has instructed Nuctech not to cooperate with these probes.