# JD.com Faces EU Subsidy Probe as China Rules Cross Border Measures Improper

> China's Ministry of Justice has determined that cross border investigative measures the EU used in its foreign subsidy probe into JD.com amount to improper extraterritorial jurisdiction and barred related cooperation. The probe concerns JD.com's proposed purchase of German retailer Ceconomy, with an EU decision expected by October 2.

- Source: Times of China (Times of China)
- Canonical URL: https://timesofchina.cn.com/en/article/jd-com-eu-subsidy-probe-response
- Chinese edition: https://timesofchina.cn.com/article/jd-com-eu-subsidy-probe-response
- Author: 中国时报编辑部
- Section: Business
- Published: 2026-08-20T14:00:00+08:00
- Updated: 2026-08-20T14:00:00+08:00
- Tags: 京东, 欧盟, 外国补贴条例, Ceconomy, 域外管辖

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China's Ministry of Justice said the European Union used improper cross border investigative measures in its foreign subsidy probe into e-commerce company JD.com, calling the moves improper extraterritorial jurisdiction, and has barred Chinese organizations and individuals from complying with or assisting them. The determination, made jointly with the Ministry of Commerce and other departments, took effect as soon as it was announced.

## What is in dispute

The case grew out of an EU investigation of JD.com under its Foreign Subsidies Regulation. Chinese authorities said the probe demanded extensive information from entities in China that had little bearing on the case itself. A ministry spokesperson said in a written statement that the requests imposed improper obligations on Chinese entities and seriously undermined the rule of law in international affairs, adding that China would take firm countermeasures under the law if the EU persists, while urging Brussels to correct its approach, stop what it called abuse of the foreign subsidy mechanism, and offer a fair, impartial and predictable business environment to companies operating in Europe.

## A deal that triggered scrutiny

The probe is tied to JD.com's proposed acquisition of German consumer electronics retailer Ceconomy, owner of the MediaMarkt and Saturn chains. JD.com's board approved the roughly 2.5 billion US dollar deal in July 2025, originally expecting to close it in the first half of 2026, but the transaction has been delayed by regulatory reviews including the EU probe. Germany's Federal Cartel Office cleared the deal in September 2025, finding little competitive overlap between the companies. JD.com formally notified the European Commission of the transaction on April 17, and the commission opened an in depth investigation on May 28, issuing a Statement of Objections on July 22 that alleged JD.com may have benefited from preferential financing, tax breaks and subsidies from the Chinese government, which could have let it offer an inflated price for Ceconomy and distort competition in the EU market. The commission is expected to reach a final decision by October 2, and if it upholds the allegations, JD.com could face significant remedies or see the deal blocked.

## Not the first case

This is not the first time the commission has used the Foreign Subsidies Regulation against a Chinese company. In April 2024 it carried out unannounced inspections at Polish and Dutch offices of Nuctech, a Beijing based security equipment maker, and formally opened an in depth investigation into the company that December, later expanding the probe to demands for information on bank accounts, ownership structures and financing records inside China. In May, China's Ministry of Justice found that the cross border measures used in the Nuctech case likewise amounted to improper extraterritorial jurisdiction, the first time it had applied rules against such jurisdiction since they took effect in April 2026.

Under those rules, Chinese authorities can place foreign organizations or individuals that promote or take part in improper extraterritorial measures on a restricted list, and depending on the circumstances may impose visa and entry restrictions, limit their ability to work or live in China, freeze assets, or restrict data sharing, transactions, trade and investment. The EU's Foreign Subsidies Regulation was adopted in November 2022 and took effect in July 2023, giving the European Commission power to investigate financial support that non EU governments provide to companies operating in Europe and to demand extensive cross border information from them.

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Originally published by Times of China. Free to cite with attribution and a link to https://timesofchina.cn.com/en/article/jd-com-eu-subsidy-probe-response.