(Bloomberg) -- European Union watchdogs raided the premises of an unidentified security equipment firm in another test of a new law aimed at preventing foreign state-funded companies from abusing their financial muscle to fend off EU rivals.

The European Commission said Tuesday it “has indications that the inspected company may have received foreign subsidies that could distort the internal market.” Regulators said they were accompanied on the raids by national watchdogs. It didn’t name the company involved or its home country. 

The move follows a flurry of probes under the Foreign Subsidies Regulation. So far these have targeted Chinese firms involved in clean energy and rail. The deluge of investigations is a reflection of the EU’s increasingly assertive approach to China, threatening restrictive trade measures that could result in tariffs, cutting China off from European markets, and potentially leading to a trade war. But for some, it’s a matter of the EU taking steps to make international trade fair again.

Read More: EU Goes on China Trade Offensive After Getting ‘Played’

Under the law, the EU has powers to vet subsidies that can distort European markets, and could issue fines, orders to suspend tenders, or outright blocks of state takeovers. 

The Chinese chamber of commerce to the EU criticized the raid, saying it was “shocked and dissatisfied” in a statement reported by Xinhua. 

--With assistance from Samuel Stolton.

(Updates with Chinese chamber of commerce comment in final paragraph.)

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