China determined that the EU's cross-border investigative practices targeting Chinese entities in its probe into JD.com under the Foreign Subsidies Regulation (FSR) constituted unlawful extraterritorial jurisdiction, and said it is barring organizations and individuals from implementing or assisting with the measures. The statement was made by China's Ministry of Justice (MOJ), together with the Ministry of Commerce (MOFCOM) and other relevant departments. The announcement takes effect immediately. The finding follows an investigation conducted pursuant to Articles 3 and 6 of China's rules on countering foreign states' unlawful extraterritorial jurisdiction. No organization or individual may implement or assist in implementing such measures, according to the official WeChat account of the MOJ.
The announcement sends a clear and firm message about China's position on the EU's unilateral measures, and the bloc should carefully weigh the broader implications of pursuing such actions, including the potential costs to its own interests and China-EU economic and trade relations, a Chinese expert said. Continued use of the FSR in this manner could erode investment confidence and further strain bilateral economic ties, the expert noted.
A Spokesperson for China's MOJ blasted the EU's targeting of JD.com, saying the EU had arbitrarily demanded extensive and unnecessary information located in China from Chinese entities on a cross-border basis. Such demands are improper and constitute a serious violation of the international rule of law, the spokesperson said.
The MOJ Spokesperson urged the EU to immediately correct its wrongful practices, stop abusing the Foreign Subsidies Regulation as an investigative tool, and provide a fair, just and predictable market environment for companies investing and operating in Europe. If the EU persists with such actions, China will take resolute countermeasures in accordance with law, the Global Times reports.
