Security equipment in sensitive locations in Europe relates to the CCP military. (part 2 of 2)

Edit and Translation: Jenny Ball
Editor: yuddy

EU is Nuctech’s most important overseas market

According to the U.S. State Department, Nuctech has a 90% market share in European maritime cargo security inspection equipment and a 50% market share in European airport baggage and cargo security equipment. However, Nuctech said that their market shares in the two markets mentioned above are about 70% and 10%, respectively.

U.S. and European officials and researchers said that in Europe, Nuctech submitted contract bids 30% to 50% lower than its rivals. Sometimes they also offer other perks, such as extending maintenance contracts and offering preferential loans.

In 2009, Nuctech’s main European rival, Smiths Detection, complained that they were being squeezed out of the market by Chinese companies’ low-price tactics, and the EU imposed a 36.6% anti-dumping tariff on Nuctech’s cargo scanners in 2010.

By the end of 2020, the EU introduced measures that can be used to scrutinize Chinese foreign direct investment. Policymakers in Brussels say that despite growing concerns about unfair state subsidies, lack of reciprocity, national security, and human rights violations, there is currently no EU-wide system in place to assess Chinese procurement.

Nuctech has close ties with the CCP government and the Chinese military

The Wall Street Journal reported in July 2020 that Nuctech is closely linked to the CCP’s operating system. It was originally a company under the Engineering School of Tsinghua University. In the early 21st century, Nuctech was run by the son of Hu Jintao, the then general secretary of the CCP Central Committee. In 2019, a subsidiary of China National Nuclear Corporation became the controlling shareholder of Nuctech’s parent company. CNNC is a CCP state-owned enterprise that builds and operates nuclear power plants.

The Associated Press reported on Thursday that Datena, a Dutch economic intelligence firm focused on China, drew a map of Nuctech’s ownership structure and found that it presented a four-tier ownership structure held by more than a dozen major entities, including four CCP state-owned enterprises and three government entities.

Jaap Van Etten, a former Dutch diplomat and CEO of Datena, said: “The question is whether we want to involve Nuctech, a company controlled by the CCP and with links to the Chinese military, in critical aspects of our border security and infrastructure.”

Experts say the CCP’s military-civilian integration strategy has proven that Chinese commercial enterprises with close ties to the CCP military in order to serve Beijing’s strategic interests.

Zhang Zhenxi, a professor at the School of Global Policy and Strategy at the University of California, San Diego, said, “Military-civil fusion is one of the key battlegrounds between the US and China,” and “Europe will have to figure out which side they are on.”

In June 2020, the US urged European countries not to purchase Nuctech security screen products. The United States is concerned that Nuctech may hand over the collected data to the CCP government, which would allow China to have insider information on European infrastructure. In addition, the CCP China may use security inspection facilities to conduct cross-border surveillance because these security inspection systems can link to databases, including personal passport data, fingerprints, airway bills, etc., all of which are at risk of espionage. U.S. authorities have suspended the use of Nuctech products, and ports have stopped using Chinese equipment to inspect cargo.

Comment: Miles Guo, the founder of the whistleblower movement, has revealed in his numerous live broadcasts that it is impossible for a private Chinese company to survive without connections with the CCP leaders at different levels, and no private Chinese company can succeed in overseas expansion without connections with the top CCP kleptocracy families.

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