EU cross-border probe unfair: China

China has determined that certain cross-border investigative measures taken by the European Union in its foreign subsidy probe into e-commerce giant JD.com constitute improper extraterritorial jurisdiction and has barred organizations and individuals from complying with or assisting in their implementation, the Ministry of Justice said on Wednesday.

The ministry said it made the determination jointly with the Ministry of Commerce and other departments under China's regulations on countering improper extraterritorial jurisdiction. The decision took effect upon its release on Wednesday.

The move concerns the EU's investigation of JD.com under its Foreign Subsidies Regulation, or FSR, which Chinese authorities said involved demands for extensive and unnecessary information from Chinese entities concerning activities within China.

A Ministry of Justice spokesperson said in a written response that the requests imposed improper requirements on Chinese entities and seriously undermined the rule of law in international affairs.

It urged the EU to correct its approach, stop what it described as abuse of the foreign subsidy investigation mechanism, and provide a fair, impartial and predictable business environment for companies investing and operating in Europe.

"If the EU persists in its approach, China will firmly take countermeasures in accordance with the law," the spokesperson said.

The investigation is linked to JD.com's proposed acquisition of German consumer electronics retailer Ceconomy AG, which operates the MediaMarkt and Saturn brands across several EU member states.

JD.com's board approved the proposed acquisition in July 2025 in a deal valued at about $2.5 billion. The transaction was initially expected to close in the first half of 2026 but has been delayed amid regulatory reviews, including the EU's FSR investigation.

Germany's Federal Cartel Office approved the deal in September 2025, concluding that the companies had little competitive overlap and that the transaction did not raise significant antitrust concerns.

JD.com formally notified the European Commission of the transaction on April 17 this year, and the commission opened an in-depth FSR investigation on May 28.

On July 22, the commission issued a Statement of Objections to JD.com, alleging that the company may have benefited from preferential financing, tax advantages and government subsidies from China, which could have enabled it to offer a high premium for Ceconomy and thereby distort normal commercial negotiations and competition in the EU's internal market.

The commission is expected to make a final decision by Oct 2. If it insists that the allegations are valid, JD.com could face significant remedies or the transaction could be blocked.

It is not the first time the European Commission has used the FSR to investigate a Chinese company.

In April 2024, the commission conducted unannounced inspections at branches of Nuctech, a Beijing-based supplier of security inspection equipment, in Poland and the Netherlands. On Dec 11,2025, it formally opened an in-depth FSR investigation into the company.

The investigation later expanded to demands for information on bank accounts, ownership structures and financing records within China, as well as requests for Chinese entities and banks to cooperate and provide large amounts of information that China considered unrelated to the investigation.

In May, China's Ministry of Justice determined that the cross-border investigative measures taken against Chinese entities in the Nuctech case also constituted improper extraterritorial jurisdiction.

It was the first application of China's regulations on countering improper extraterritorial jurisdiction after they took effect in April 2026.

Under the regulations, relevant Chinese government departments may place foreign organizations or individuals that promote or participate in improper extraterritorial measures on a malicious entity list.

Depending on the circumstances, authorities may also impose visa and entry restrictions, limit employment or residence in China, seize or freeze assets, and restrict the provision of data and personal information, transactions, cooperation, imports and exports, investment, or the entry of products and transportation equipment.

The EU adopted the Foreign Subsidies Regulation in November 2022, and it took effect in July 2023. The regulation gives the European Commission powers to investigate financial contributions provided by non-EU governments to companies operating in Europe and can require companies to provide extensive cross-border information.