China orders entities not to assist EU's JD.com probe
EU cited concerns that JD.com might have received foreign subsidies that could distort the bloc’s market
The Chinese government declared on August 19 that a European Union investigation into Chinese e-commerce giant JD.com was an "improper extraterritorial jurisdiction" measure, and subsequently ordered entities not to participate in or support the probe. This order marks the second instance of China employing its regulations against "unlawful extraterritorial jurisdiction measures" since their introduction in April, as part of Beijing's broader economic pressure strategy amid deteriorating relations with key trading partners, including the EU.
The European Commission had initiated an investigation in May concerning JD.com's $2.5 billion acquisition of German electronics retailer Ceconomy under the Foreign Subsidies Regulation, expressing concerns that JD.com may have received foreign subsidies that could distort the EU market. China's justice ministry criticized the EU probe for demanding "extensive and unnecessary" information from within China, labeling it a "serious violation of the international rule of law."
China cautioned that if the EU continues its unilateral actions, Beijing will retaliate "in accordance with the law." This action echoes a similar order issued in May against an EU investigation into Chinese security firm Nuctech.
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