China orders entities not to assist EU's JD.com probe

[BEIJING] China said on Wednesday (Aug 19) that a European Union investigation into Chinese e-commerce giant JD.com constituted “improper extraterritorial jurisdiction” and ordered entities not to implement or assist with the probe.

The order, issued by the justice ministry, is the second time that China has invoked its regulations countering “unlawful extraterritorial jurisdiction measures”. Introduced in April, the regulations expanded Beijing’s economic pressure toolkit amid strained ties with trading partners including the EU.

The European Commission opened an investigation in May into JD.com’s US$2.5 billion bid for German electronics retailer Ceconomy under the Foreign Subsidies Regulation, citing concerns that JD.com might have received foreign subsidies that could distort the bloc’s market.

The EU probe demanded from a Chinese entity “extensive and unnecessary” information from within China, China’s justice ministry said in a separate statement, calling the demand “a serious violation of the international rule of law”.

“If the EU persists in its unilateral actions, China will resolutely retaliate in accordance with the law,” the ministry said.

China issued a similar order in May against an EU investigation into Chinese security firm Nuctech. REUTERS