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Finbarr Bermingham

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 European Commission opened an in-depth investigation to assess whether JD.com’s proposed takeover of German retailer Ceconomy would “distort the EU internal market” because of the Chinese company’s alleged receipt of state subsidies.
It marked the latest in a succession of inquiries opened under the FSR, a competition sector tool that requires companies under investigation to hand over reams of information within short deadlines.
While Brussels is currently expanding efforts to tackle the impact of Chinese subsidies on its external trade balance, the FSR is aimed at countering the effect of subsidies caused by firms already present in the EU market.
This is the second time Beijing has used a blocking order to ensure entities do not comply with such a probe, having issued a similar decree with regard to a case centred on airport scanner maker Nuctech in May.
Chinese companies affected have complained loudly about the nature of information they are required to share. In this regard, the FSR has become an example of how difficult it is for businesses to comply simultaneously with sharpening regulations in both the EU and China.
Nuctech unsuccessfully sued the commission in 2024, alleging that dawn raids on its Dutch and Polish premises caused reputational harm and that it was being asked to disclose information that would force it to violate Chinese criminal laws.
Last month, meanwhile, wind turbine manufacturer Goldwind asked for its own FSR case to be suspended because the commission’s request for information went beyond the scope of the investigation. The EU’s General Court ruled against Goldwind’s claim, saying it was too speculative.
The Chinese justice ministry statement, issued jointly with the Ministry of Commerce, accused the EU of “arbitrarily demanding extensive and unnecessary information about China from the Chinese entity”.
“This is an undue demand on the entity and a serious violation of international rule of law,” the statement said, commanding that “no organisation or individual implement or assist in the implementation of such measures”.
The proposed US$2.5 billion transaction would see JD.com acquire Europe’s largest electronics retailer, Ceconomy. The German firm specialises in consumer electronics and home appliances.
Discussions over the acquisition have taken place in the shadow of rising EU-China trade tensions, which both sides are trying to defuse.


Geopolitechs, a Substack newsletter that analyses Chinese policy decisions, noted that while Beijing had not ordered the EU to terminate its investigation, the directive still put JD.com in an awkward position.
“What China is objecting to is the commission extending its investigative powers into Chinese territory by requiring Chinese companies, banks and other institutions to cooperate and provide information that Beijing considers excessively broad in scope,” the newsletter read.
“Providing information to the commission could violate the Chinese prohibition, while refusing to provide it could lead the commission to conclude that JD.com has failed to cooperate and draw adverse inferences.”


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Chinese justice and commerce ministries order the ban in a joint statement condemning ‘undue extraterritorial jurisdiction measures’


Chinese justice and commerce ministries order the ban in a joint statement condemning ‘undue extraterritorial jurisdiction measures’.


China blocks firms from aiding EU’s JD.com probe as regulatory clash deepens

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Chinese justice and commerce ministries order the ban in a joint statement condemning ‘undue extraterritorial jurisdiction measures’

Chinese justice and commerce ministries order the ban in a joint statement condemning ‘undue extraterritorial jurisdiction measures’