China’s Ministry of Justice on August 19, 2026, formally ordered organizations and individuals within China not to implement or assist the European Union’s investigation into JD.com’s planned €2.5 billion ($2.5 billion) acquisition of German retailer Ceconomy, calling the probe an improper exercise of extraterritorial jurisdiction [1, 2, 3, 4, 5, 6, 7, 8, 9].
The EU launched the investigation in May 2026 under its Foreign Subsidies Regulation (FSR), examining whether JD.com gained an unfair advantage by receiving foreign subsidies such as preferential financing, tax breaks, or grants that might distort competition in the EU internal market [1, 3, 4, 6, 7, 8, 9]. The European Commission said initial findings indicate JD.com may have benefited from foreign subsidies that distort the EU market [6]. JD.com denied these claims, stating, "This acquisition will not be financed through subsidies provided by China, and JD.com denies receiving any aid that could distort EU market competition" [4].
China condemned the EU’s cross-border requests for extensive and unnecessary domestic information from Chinese entities during the investigation. A spokesperson said, "The EU’s arbitrary and excessive demands for information inside China seriously violate international law," calling it an abuse of extraterritorial jurisdiction [1, 2, 4, 5, 6, 7, 8, 9]. The Ministry of Justice stressed that China’s refusal to cooperate is based on an April 2026 law intended to counter extraterritorial jurisdiction abuses by foreign authorities [1, 3, 4, 5, 6, 7, 8, 9].
China warned it will take "resolute legal countermeasures" if the EU continues its investigation. The Ministry said, "If the EU persists in its unilateral actions, China will resolutely retaliate in accordance with the law" [1, 4, 5, 6, 7, 8, 9]. This is the second such order China has issued this year; a similar directive was given in May 2026 regarding the EU probe into Chinese security firm Nuctech [1, 3, 6, 7, 8].
The investigation places heavy compliance demands on Chinese companies, requiring extensive information to be provided on short notice, causing difficulties in responding to the EU’s requests [2]. In late June 2026, Germany’s Federal Ministry of Economics approved JD.com’s Ceconomy acquisition with conditions mandating protection of customer data and government supervision, including revocation rights if compliance is breached [6, 7, 8].
China’s Justice Ministry hopes the EU will "correct its investigation methods and stop abusing the Foreign Subsidies Regulation tool to create a fair and predictable market environment for Chinese businesses in Europe" [4, 5]. The EU Commission is expected to decide on the acquisition’s approval by October 2, 2026 [6, 7, 8].
