China Blocks EU Probe
Beijing Orders Non-Cooperation Amid EU Probe into JD.com's Ceconomy Takeover
Key Points
The EU opened a May investigation under the Foreign Subsidies Regulation into JD.com's bid for Ceconomy, valued at about €2.2 billion (with some reports citing roughly $2.5 billion).
China’s justice ministry issued a directive instructing entities not to assist with the EU probe, citing new regulations against unlawful extraterritorial jurisdiction introduced in April.
This enforcement represents the second use of Beijing’s extraterritorial-jurisdiction rules, following a May order against an EU probe into the Chinese security firm Nuctech.
State media coverage, including CCTV, reported the directive and framed it as part of a broader effort to shield Chinese firms from unilateral external pressure.
China has ordered its companies and individuals not to help the European Union investigate e-commerce giant JD.com, calling the EU probe an unlawful overreach into Chinese territory. The directive came from China's Ministry of Justice, which described the EU's investigation as "improper extraterritorial jurisdiction," according to South China Morning Post.
The EU opened its investigation in May under its Foreign Subsidies Regulation (FSR) — a rule that lets Brussels probe deals where foreign government subsidies may distort competition. The target: JD.com's planned €2.2 billion takeover of European electronics retailer Ceconomy. Beijing's response was swift and blunt: do not cooperate, and expect countermeasures if the EU pushes further.
China's Justice Ministry Issues a Rare Block Order
China's Ministry of Justice issued the non-cooperation directive under new anti-extraterritoriality rules introduced in April 2025. Those rules give Beijing formal power to push back against foreign investigations it sees as overstepping, according to Big News Network. The ministry ruled that the EU's information requests inside China were unlawful. It told Chinese entities to refuse them.
This is only the second time Beijing has used these new rules. The first was in May, when China issued a similar order against an EU probe into Nuctech, a Chinese security equipment firm, Big News Network reported. That pattern shows Beijing is building a habit of formally blocking EU investigations it objects to.
What the EU's Foreign Subsidies Probe Actually Targets
The EU's Foreign Subsidies Regulation, launched in 2023, lets Brussels investigate whether state money from outside the EU gives a company an unfair edge in takeovers or contracts. In JD.com's case, the EU wants to know if Chinese government subsidies helped fund its €2.2 billion bid for Ceconomy, according to The Edge Malaysia.
Ceconomy is the parent company of MediaMarkt and Saturn, two of Europe's biggest electronics retail chains. A successful JD.com takeover would give the Chinese firm a major foothold in European retail. The EU says it needs to check whether subsidies make that deal unfair to competitors. China says Brussels has no right to demand records held inside China.
Beijing Frames the Clash as a Fight for Global Legal Norms
Chinese state media, including CCTV, covered the directive widely. Global Times quoted experts who said Beijing's move "sends a clear signal" that China will not accept what it calls unilateral, ill-founded pressure on its firms. Officials argued that the EU's broad data requests inside China undermine the international rule of law.
China's government warned it would respond with "lawful countermeasures" if the EU continues its investigation as currently structured. That threat leaves the next move to Brussels. The EU has not yet said whether it will scale back its requests or press ahead, setting up a direct standoff between the two economic blocs.
EU-China Trade Tensions Keep Rising Over Subsidy Rules
This clash is part of a wider pattern. The EU has used the FSR to scrutinize several Chinese-linked deals and contracts in the past two years. China has consistently objected, calling the regulation a tool of protectionism dressed up as legal process, according to China Daily.
The JD.com case raises the stakes further. A €2.2 billion deal, a direct block order from a national justice ministry, and threats of retaliation put both sides on a collision course. The outcome could shape how future cross-border mergers involving Chinese firms are handled across Europe.
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