China has ordered organisations and individuals not to assist with the European Union’s investigation into JD.com’s proposed takeover of German retailer Ceconomy, declaring the probe unlawful extraterritorial jurisdiction.

China’s Ministry of Justice issued the order on Wednesday, August 19, after the European Commission opened an in-depth investigation in May under the EU’s Foreign Subsidies Regulation (FSR), which has been in force since 2023.

The ministry said the EU had demanded “extensive and unnecessary” information from a Chinese entity and described the request as a serious violation of international rule of law. A ministry spokesperson said, “If the EU persists in its unilateral actions, China will resolutely retaliate in accordance with the law.”

The investigation concerns JD.com’s €2.2 billion bid for Ceconomy, which operates more than 1,000 electronics stores across Europe under the MediaMarkt and Saturn brands. The transaction, one of the largest Chinese investments in Europe in recent years, had initially been expected to complete in the first half of 2026, having initially been announced in late July.

The European Commission’s investigation is examining whether JD.com benefited from foreign subsidies that could distort competition in the European market. The commission has until October 2 to reach a decision, according to Reuters.

The dispute marks the second time China has used regulations introduced in April to counter what Beijing considers unlawful extraterritorial measures by foreign governments. The Ministry of Justice issued a similar order in May concerning an EU investigation into Chinese security equipment company Nuctech.

The European Commission told Bloomberg News that the FSR does not “distinguish between companies based on their nationality or ownership” and is consistent with the EU’s international obligations. JD.com declined to comment.

China’s Ministry of Justice said the new rules allow Beijing to take countermeasures against foreign jurisdiction that breaches international law or harms China’s sovereignty, security, development interests or the legitimate rights of Chinese organisations and citizens.

The latest confrontation comes as economic relations between China and the EU face increasing pressure, with European authorities examining Chinese companies and products across several sectors. The dispute over JD.com’s proposed acquisition adds a regulatory complication to a deal that was already facing scrutiny over its potential impact on competition in the European market.

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