Temu’s Europe HQ raided as part of EU foreign-subsidy probe

[BRUSSELS] Temu’s European headquarters in Dublin have been hit by raids by European Union competition watchdogs, amid suspicions the Chinese e-commerce giant may have received unfair subsidies from Beijing.

The unannounced inspections took place last week, according to sources familiar with the matter who spoke under condition of anonymity.

The swoop by EU officials is the latest test of the bloc’s tough new rules aimed at preventing sovereign states from using their financial muscle in an non-competitive ways.

Aside from acquisitions such as Abu Dhabi National Oil’s takeover of Covestro, the EU has wielded the Foreign Subsidy Regulation largely against Chinese involvement in European markets such as rail and clean energy sectors.

A spokesperson for the European Commission confirmed “an unannounced inspection at the premises of a company active in the ecommerce sector” but declined to name the firm. Temu representatives did not immediately respond to a request for comment.

Temu owner PDD Holdings last month warned of a slowdown in an intensively competitive Chinese consumption environment, reflecting an escalating battle in online commerce with sector leaders such as Alibaba Group Holding. BLOOMBERG