China blocks firms from aiding EU’s JD.com probe as regulatory clash deepens
Beijing has banned Chinese entities from assisting with a European Union investigation into e-commerce giant JD.com under the bloc’s foreign subsidies regulation (FSR). A statement from China’s Ministry of Justice on Wednesday condemned the probe as “undue extraterritorial jurisdiction measures”, ordering that “no organisation or individual may execute or assist in the execution”. In May, the…
China has prohibited its firms from supporting the European Union's investigation into JD.com, a leading e-commerce company, under the EU's foreign subsidies regulation. This ban stems from Beijing's claim that the probe constitutes "undue extraterritorial jurisdiction measures." In May, the European Commission initiated a comprehensive investigation to determine if JD.com's acquisition of German retailer Ceconomy would distort the EU's internal market due to alleged state subsidies.
This move marks the second instance where China has imposed a blocking order on entities complying with a similar EU investigation. Chinese entities affected by these probes have expressed frustration over the extensive information required from them. JD.com's proposed US$2.5 billion acquisition of Ceconomy has been under scrutiny amidst escalating EU-China trade tensions.
The Chinese justice ministry and the Ministry of Commerce jointly addressed the EU's demands as "arbitrary" and a "serious violation of international rule of law," insisting that "no organisation or individual implement or assist in the implementation of such measures."
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
