China’s Justice Ministry instructed domestic entities not to implement or assist a European Union investigation into e-commerce giant JD.com, escalating a regulatory dispute over the bloc’s Foreign Subsidies Regulation.
The directive, issued Wednesday, targets the EU’s probe into JD.com’s $2.5 billion acquisition of German electronics retailer Ceconomy, launched in May under the regulation. Beijing argued the investigation constitutes improper extraterritorial jurisdiction, demanding what it described as ‘extensive and unnecessary information from within China from a Chinese entity.’
China’s stance follows a similar order issued in May against an EU investigation into Chinese security firm Nuctech, underscoring Beijing’s broader pushback against Brussels’ enforcement of foreign subsidy rules. The ministry warned that persistent unilateral EU actions would prompt ‘resolute retaliation in accordance with the law.’
The EU’s Foreign Subsidies Regulation empowers the bloc to scrutinize mergers and public procurement bids involving companies that may have received foreign state support, aiming to prevent distortions in the single market. JD.com’s proposed acquisition of Ceconomy remains under review as the regulatory confrontation intensifies.
