India, April 26 -- The European Union on Friday said it carried out raids at the offices of Chinese security equipment maker Nuctech as part of a probe into subsidies, an episode which may further escalate tension.

In a statement, the European Commission said: The European Commission is carrying out unannounced inspections at the premises of a company active in the production and sale of security equipment in the European Union.

The Commission said it has indications that the inspected company may have received foreign subsidies that could distort the internal market pursuant to the Foreign Subsidies Regulation.

The Commission officials were accompanied by their counterparts from the national competition authorities of the Member State...