China has determined that certain cross-border investigative measures taken by the European Union in its foreign subsidy probe into e-commerce giant JD.com constitute improper extraterritorial jurisdiction and has barred organizations and individuals from complying with or assisting in their implementation, the Ministry of Justice said on Wednesday.
The ministry said it made the determination jointly with the Ministry of Commerce and other departments under China's regulations on countering improper extraterritorial jurisdiction. The decision took effect upon its release on Wednesday.
The move concerns the EU's investigation of JD.com under its Foreign Subsidies Regulation, or FSR, which Chinese authorities said involved demands for extensive and unnecessary information from Chinese entities concerning activities within China.
A Ministry of Justice spokesperson said in a written response that the requests imposed improper requirements on Chinese entities and seriously undermined the rule of law in international affairs.
It urged the EU to correct its approach, stop what it described as abuse of the foreign subsidy investigation mechanism, and provide a fair, impartial and predictable business environment for companies investing and operating in Europe.
