Beijing, China – A new trade dispute has strained relations between Beijing and Brussels after China’s Ministry of Justice threatened to take strict countermeasures against the European Union. This comes against the backdrop of the EU’s ongoing investigation into Chinese e-commerce giant JD.com’s plans to acquire German company C-Economy. C-Economy is the parent company of the well-known electronics retailers Mediamarkt and Saturn.
Beijing’s position and countermeasures
China’s Ministry of Justice announced on Wednesday that if the European Union proceeds with its current investigations, Beijing will respond decisively and directly. In an escalation of tensions, China has prohibited organizations and individuals from providing any assistance to the EU in its requests for specific information. Furthermore, China accused Brussels of seeking broad and unnecessary information that infringes upon Chinese interests.
Details of the acquisition deal and the European Commission’s position
The European Commission has been conducting an in-depth review of the proposed acquisition since last May. Its investigation is focusing on whether JD.com has received subsidies and support from the Chinese government that could distort fair competition in the European market. This includes preferential financing, tax breaks, and grants. JD.com has categorically rejected these concerns.
The acquisition offer from the Chinese company for C-Economy (based in Düsseldorf, Germany) is valued at approximately €2.2 billion (US$2.6 billion). It should be noted that the German Federal Cartel Office has already approved the deal. The ongoing EU review remains entirely separate from the established German legal procedures.
