China has taken a significant and highly strategic escalation in the growing geopolitical trade and regulatory confrontation with the European Union by formally instructing Chinese entities not to comply with certain aspects of the EU’s investigation into Chinese security equipment manufacturer Nuctech. The development was announced on 15 May 2026 under China’s anti extraterritorial jurisdiction framework and represents one of the clearest practical applications of Beijing’s counter foreign sanctions and regulatory blocking regime to date.
According to official Chinese government statements, the EU’s requests for information and investigative measures relating to Nuctech were determined to constitute “improper extraterritorial jurisdiction” under China’s “Regulations on Countering Foreign Improper Extraterritorial Jurisdiction.” Chinese organizations and individuals were instructed not to comply with or assist in implementing such foreign measures without approval from Chinese authorities.
This development signals a major evolution in the global regulatory environment, where multinational corporations may increasingly face direct legal conflicts between competing jurisdictions. Companies operating across China, Europe, and other major markets may now encounter situations where compliance with one country’s regulatory requirements could potentially violate another country’s blocking or anti extraterritorial laws.
From a customs, trade compliance, and investigations perspective, the case highlights the rapidly intensifying intersection between trade controls, economic security, sanctions, data governance, and geopolitical regulatory enforcement. Businesses should closely monitor developments relating to China’s blocking rules, cross border information transfer restrictions, and anti sanctions framework, particularly when responding to foreign government investigations, trade remedy proceedings, or enforcement requests involving Chinese operations or entities.
Official Authority: Ministry of Justice of the People’s Republic of China
Official Announcement – MOJ No. 5 – Date: 15 May 2026 https://www.moj.gov.cn/pub/sfbgw/gwxw/xwyw/202605/t20260515_535047.html