China Orders Entities Not to Cooperate With EU JD.com Investigation
China's Response to EU Investigation of JD.com
Background of the EU Investigation
BEIJING, Aug 19 (Reuters) - China said on Wednesday 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.
China's Countermeasures and Regulations
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.
Details of the EU's Concerns
The European Commission opened an investigation in May into JD.com's $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.
China's Criticism of the EU Probe
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.
Previous Incidents and Broader Implications
China issued a similar order in May against an EU investigation into Chinese security firm Nuctech.
(Reporting by Yukun Zhang, Xiuhao Chen and Liz Lee; Editing by Mark Potter and Emelia Sithole-Matarise)
