China Calls EU Probe into JD.com an Unlawful Exercise of Extraterritorial Jurisdiction
Dragon Media News Desk
China has described the European Union’s investigation into Chinese e-commerce company JD.com under the bloc’s Foreign Subsidies Regulation as an unlawful exercise of extraterritorial jurisdiction.
China’s Ministry of Justice said on Wednesday that no organization or individual may comply with or assist in implementing measures that Beijing has determined constitute unlawful extraterritorial jurisdiction.
The statement follows the European Commission’s decision in May to open an in-depth investigation into JD.com’s proposed acquisition of German electronics retailer Ceconomy AG.
The European Commission is examining whether JD.com may have benefited from financial contributions linked to China that could distort competition in the EU internal market.
JD.com has maintained that the proposed acquisition is not being financed through subsidies from the Chinese government or other non-EU governments, saying the transaction will be funded through private bank financing and cash generated from its normal business activities.
China’s Ministry of Justice said its conclusion was reached under rules introduced in April to counter what Beijing considers unlawful extraterritorial jurisdiction by foreign states.
Under those rules, the Chinese government may take countermeasures against foreign actions that it considers to violate international law and basic norms governing international relations, or that harm China’s sovereignty, security and development interests, as well as the legitimate rights and interests of Chinese citizens and organizations.
The rules also prohibit Chinese organizations and individuals from assisting in the implementation of foreign measures that have been designated unlawful by Chinese authorities.
The ministry said the EU investigation had demanded broad and unnecessary information located in China, which it described as a serious violation of principles governing international jurisdiction.
A Ministry of Justice spokesperson urged the European Union to correct what China considers improper practices, stop what Beijing described as the misuse of the Foreign Subsidies Regulation, and ensure a fair, impartial and predictable environment for companies investing and operating in the European market.
The spokesperson also warned that China would take countermeasures in accordance with law if the EU continued along what Beijing considers the wrong course.
The JD.com case is the second major instance in recent months in which China has challenged an EU investigation under the Foreign Subsidies Regulation on extraterritorial jurisdiction grounds.
In May, the Ministry of Justice reached a similar conclusion regarding an EU investigation into Chinese security inspection equipment manufacturer Nuctech.
From the EU’s perspective, the Foreign Subsidies Regulation is designed to determine whether financial support provided by non-EU governments gives companies an unfair advantage in the European internal market.
The dispute over JD.com therefore extends beyond the proposed acquisition itself. It highlights a broader legal and regulatory disagreement between China and the European Union over how far EU authorities can demand information located outside the bloc and how foreign subsidy rules should apply to Chinese companies operating or investing in Europe.
