China Blocks EU Probe into JD Bid
China blocks EU probe into JD.com’s $2.5 billion bid citing undue extraterritorial jurisdiction over possible subsidies, including financing and tax incentives
China has blocked domestic entities from cooperating with a European Union investigation into JD.com’s $2.5 billion bid for German electronics retailer Ceconomy, citing “undue extraterritorial jurisdiction”.
The EU investigation, which began in May 2026, is focused on possible subsidies to JD.com, including preferential financing, tax incentives, and grants, from entities that may be attributable to China.
Background on the Investigation
The European Commission (EC) opened an “in-depth” probe under the Foreign Subsidies Regulation (FSR), citing a preliminary assessment that flagged potential subsidies to JD.com.
According to the EC, these measures may have allowed JD.com to offer terms that affected the takeover negotiations.
The takeover process began in July 2025, when Ceconomy entered discussions with JD.com over a potential voluntary public offer.
China’s Response to the Investigation
China’s Ministry of Justice, together with the Ministry of Commerce and other relevant departments, issued a notice under the country’s Regulations on Anti-Undue Extraterritorial Jurisdiction by Foreign Countries.
The notice states that no organization or individual may implement or provide assistance in implementing the EU’s measures.
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A Ministry of Justice spokesperson said that the EU’s investigation constitutes “undue extraterritorial jurisdiction” and that China hopes the EU will “immediately correct its erroneous practices”.
The spokesperson also warned that if the EU persists in its unilateral actions, China will “resolutely retaliate in accordance with the law”.
Similar Cases and Implications
The move follows a similar order issued by China in May 2026 against an EU investigation into Chinese security firm Nuctech, also conducted under the FSR.
In that case, the Ministry of Justice and Ministry of Commerce likewise determined that the EU’s cross-border investigation practices constituted undue extraterritorial jurisdiction and barred entities from cooperating with the probe.
As the EU investigation into JD.com’s bid for Ceconomy continues, the provisional deadline for completing the assessment is set for 2 October 2026.
The EC has already sent a Statement of Grounds to JD.com, formally setting out its objections in writing and marking a further stage in the in-depth probe.
The EC’s investigation into JD.com’s bid for Ceconomy is ongoing, with the outcome likely to have significant implications for the EU’s Foreign Subsidies Regulation and China’s relations with the EU.
