China threatens EU over JD.com and Ceconomy takeover

The European Union (EU) is currently examining whether JD.com has received unfair advantages through state subsidies in its attempt to take over the Ceconomy Group, which includes the parent company MediaMarkt-Saturn. This review is at the center of a conflict between the EU and China.

According to reports, the Chinese Ministry of Justice has threatened to respond decisively if the EU continues its investigation. China views the EU's activities as an attempt to exercise excessive extraterritorial jurisdiction and has labeled this as inappropriate.

The Chinese government is calling for fair treatment in the investigations and emphasizes that the allegations of publicly funded subsidies against JD.com are unfounded. The EU, on the other hand, sees the necessity to evaluate potential distortions of competition and review impacts on the European market.

This is not the first confrontation between the EU and China regarding trade practices. Similar tensions have previously arisen, when the EU expressed concerns about the fairness and transparency of competitive conditions in China.

The EU has tightened the legal framework for assessing foreign takeovers, particularly in sensitive sectors. These developments are leading to an increased effort required for the approval of such transactions, as reflected in the reactions of Chinese companies and the government.

The situation remains tense as both parties navigate a complex international trade environment, where economic interests and geopolitical tensions often clash. A resolution or clarification of their respective positions is still pending.