China has urged the European Union to cease erroneous practices immediately, and to provide a fair and non-discriminatory environment for businesses from all countries operating in Europe, said the Ministry of Commerce in an online statement published on Wednesday.

On Tuesday, the European Commission conducted raids on offices of a Chinese company in Europe, alleging it had received foreign subsidies. This is the fifth subsidy investigation by the European authorities targeting Chinese enterprises since February this year.

It is the first time that on-site searches have been conducted. The Chinese business community has reacted with shock and strong dissatisfaction, said a statement from the head of the ministry's trade remedy and investigation bureau.

China will closely follow further actions by the European side and take all necessary measures to resolutely protect the legitimate rights and interests of Chinese companies, the official stressed.

According to the statement, this action disrupts fair market competition and significantly undermines the confidence of all foreign companies operating in Europe, signaling a deterioration in the EU's business environment and sending a starkly negative message to all foreign entities operating in the European market.

The commerce ministry said that China views these investigations as a targeted misuse of procedural rules, weaponizing investigation tools under the guise of promoting fair competition. These protectionist activities have distorted the level playing field in the name of so-called fair competition.