Nuctech Company
| Company type | State-owned enterprise (partial) |
|---|---|
| Industry | Security inspection technologies |
| Founded | 1997 |
| Founder | Professors from Tsinghua University |
| Headquarters | Beijing , China |
Area served | Worldwide |
Key people | Zhiqiang Chen (President, Chairman, CEO) |
| Products | Cargo scanning, metal detectors, X-ray systems, puffer machines, body scanners, fever detection systems |
| Owner | Tsinghua Tongfang (majority), China National Nuclear Corporation (minority via Tsinghua Tongfang) |
| Parent | Tsinghua Tongfang |
Nuctech Company, Ltd is a Chinese enterprise with partial state ownership, focusing on security inspection technologies and headquartered in Beijing. Established in 1997 as a spin-off from Tsinghua University, it functions under the umbrella of Tsinghua Tongfang, which is controlled by the China National Nuclear Corporation, a state-owned organization responsible for managing China’s nuclear fuel programs across civilian and military domains.
The company’s range of products features technologies such as Cargo scanning, metal detector, X-ray, and puffer machine systems, catering to security and inspection sectors worldwide. Due to its partial government ownership and connections to the Chinese Communist Party and military, concerns have been raised in multiple countries about supply chain integrity and the awarding of contracts for security screening devices.
Leadership is headed by Zhiqiang Chen, who holds the positions of President, Chairman, and CEO.
History
Founded in 1997 in Beijing as Nuctech Co, Ltd., the company originated from Tsinghua University professors with the goal of commercializing container inspection technologies. By 1999, it had supplied inspection systems to Chinese customs authorities and secured its initial overseas contracts in 2001 with Australia and the United Arab Emirates. In 2006, Nuctech won a significant contract to deploy scanners capable of detecting hazardous liquids at 147 airports across China. The company broadened its manufacturing footprint internationally by opening production facilities in Brazil in 2015 and near Warsaw, Poland in 2018. In 2016, Nuctech launched FoundMacro, a subsidiary dedicated to defense-related products.
Nuctech’s x-ray scanning devices and security solutions have been utilized at prominent international events such as the 2014 FIFA World Cup, the 2016 Olympic and Paralympic Games in Brazil, the 2015 Milan Expo, Wimbledon tennis championships, and the 2018 Summit of the Americas.
In April 2024, European Commission officials conducted raids on Nuctech offices located in Poland and the Netherlands over suspected violations of the EU Foreign Subsidies Regulation. The company’s subsequent legal challenges against these inspections were dismissed by both the General Court and later by the European Court of Justice as of March 2025.
Ownership and management
Nuctech operates as a subsidiary under Tsinghua Tongfang, which is listed on the Shanghai Stock Exchange and holds approximately two-thirds ownership of Nuctech’s shares. In 2019, the state-owned China National Nuclear Corporation (CNNC), overseeing China’s nuclear fuel programs for civilian and military use, acquired a 21% stake in Tsinghua Tongfang. Through this investment, CNNC is reported to control about 16% of Nuctech’s shares. Despite this, in April 2021 Nuctech asserted that "the Chinese government does not control the company or its management decisions."
Among previous executive directors were Hu Haifeng, son of former CCP General Secretary Hu Jintao, who served from 2003 until 2008, along with Rong Yonglin and Zhou Liye. The current chairman is Chen Zhiqiang.
A report published in 2022 by the Associated Press highlighted that Nuctech’s intricate ownership framework complicates transparency regarding influence and accountability.
Products and services
Nuctech produces a variety of security inspection equipment including scanners designed for baggage, parcels, cargo, vehicles, personnel screening, as well as fever detection systems. These products are employed across sectors such as civil aviation, customs enforcement, railway and highway freight inspections, building security measures, and large-scale event protection. In the United States, Nuctech body scanners are utilized within correctional facilities to identify contraband items.
The company’s equipment is operational at numerous European airports including those in Spain, Italy, Cyprus, and the United Kingdom. Additionally, customs and border agencies in Ireland and Finland deploy Nuctech technology. The firm has also secured contracts in countries such as Syria, Australia, Turkey, Iran, Belgium, Venezuela, Zimbabwe, Norway, and South Korea.
Criticism
Nuctech Company has encountered various criticisms and media attention due to controversies linked to its business activities.
Data security
Questions concerning Nuctech's connections to the Chinese Communist Party and CNNC have sparked data security concerns in nations such as Canada and Lithuania. In 2020, Finnish customs authorities determined there were no security grounds to disqualify a Nuctech bid. The following year, after Lithuania excluded Nuctech from a tender on national security grounds, the company asserted that it had no recorded data breaches or security incidents and that it adheres strictly to Lithuanian, Polish, and European Union regulations—excluding those of any foreign nation, including China. Later, a Lithuanian government panel approved the deployment of Nuctech X-ray devices at the Belarus border.
In 2022, members of the European Parliament questioned a tender awarding Nuctech scanners at Strasbourg Airport due to comparable security apprehensions.
Procurement investigation in the Philippines
In 2006, the Philippine government acquired 30 mobile X-ray machines through a loan arrangement with China, valued at P7.953 billion. A decade later, the Commission on Audit of the Philippines (COA) reported that the contract was "significantly overpriced," highlighting that alternative suppliers offered lower bids and that Nuctech's maintenance expenses were higher. COA requested that the Bureau of Customs conduct a thorough review and assessment of the contract despite difficulties in verifying pricing and technical specifications.
Anti-dumping dispute
In July 2009, Smiths Group accused Nuctech of illegal dumping practices, triggering an ongoing anti-dumping probe by the European Union (EU). By June 2010, the EU had imposed a five-year tariff on Nuctech's products due to suspected dumping in European markets. These duties expired without renewal requests. Subsequent to this period, Nuctech relocated production operations to a facility near Warsaw, Poland.
Bribery scandal in Namibia
On July 21, 2009, Namibian authorities arrested a Nuctech representative alongside two local individuals after investigations by Namibia's Anti-Corruption Commission revealed that a US$12.8 million advance payment for 13 scanners was funneled to a company named Teko Trading. Prosecutors charged all three with involvement in a bribery scheme connected to securing a $55.3 million contract in May 2008 for installing Nuctech scanners at customs checkpoints throughout Namibia. Some reports cite the contract amount as $69 million. Following this incident, Namibian President Hifikepunye Pohamba suspended General Martin Shalli over allegations of receiving substantial sums from Nuctech. In 2019, those accused were acquitted by the courts.
Bribery scandal in Taiwan
In February 2020, Taiwan's former chief of aviation security within the Aviation Police Bureau was convicted of corruption tied to a procurement project involving Nuctech.
Canadian embassies contract rejected
In July 2020, Canada's Minister of Foreign Affairs announced an examination of contracts awarded by the Canada Border Services Agency due to concerns over Nuctech's affiliations with the Chinese Communist Party. After Deloitte conducted a security assessment, the Canadian government cancelled a $6.8 million contract with Nuctech. By September 2020, the Canadian International Trade Tribunal was reviewing the procurement procedures related to this contract.
Concerns Regarding Quality and Procurement in Malaysia
A report from July 2020 by Malaysiakini brought attention to issues related to the quality and procurement of Nuctech products, as identified by both Malaysia's National Audit Department and the Royal Malaysian Customs Department.
Sanctions and Prohibition in the United States
In 2014, the Transportation Security Administration prohibited the use of Nuctech devices within U.S. airports due to security apprehensions. Later, in December 2020, the United States Department of Commerce placed Nuctech on the Bureau of Industry and Security's Entity List, imposing restrictions on technology exports citing national security concerns.