China is telling the European Union to back off a €2.2 billion deal. At the center of the fight is JD.com's plan to buy German retailer Ceconomy.
Beijing's Ministry of Justice says the EU's investigation into that acquisition is an overreach of jurisdiction. The ministry argued that Brussels' requests for data held within Chinese borders violate global legal norms. It said those demands also run up against China's anti-foreign sanctions regulations.
In a statement reported by state broadcaster China Central Television on Wednesday, the ministry urged the EU to "immediately correct its wrong practices, stop abusing the foreign subsidy investigation tool, and provide a fair, impartial and predictable market environment for companies investing and operating in Europe."
The Ministry of Justice, the Commerce Ministry, and other agencies made the determination together.
The EU is working under a law called the Foreign Subsidies Regulation. It lets the bloc investigate whether foreign companies got unfair help from their home governments that could distort competition.
European officials believe JD.com could have received government backing from Beijing - such as low-cost loans, tax breaks, and direct grants - that might give it an unfair advantage in Europe.
The EU opened its in-depth review in May. It is the first time a Chinese corporate takeover has faced this level of scrutiny under the bloc's foreign subsidies law.
This fight is not happening in a vacuum. Brussels has accused Chinese practices of harming the bloc's economy, and the two sides' trade relationship has been strained for a while.
In late July, Beijing placed export restrictions on a group of 14 European firms, one of which was German defense giant Rheinmetall AG. That move came in response to restrictions placed by the EU on businesses based in China's mainland and Hong Kong.
So the JD.com review is landing in a moment when both sides are already trading blows. The EU sees the deal as a test of whether Chinese companies are playing by the same rules, while China sees the review as a political weapon.
For your portfolio, the bigger story is what this says about the climate for cross-border deals. When a routine acquisition turns into a political battleground, the risk on every transaction rises.
European companies that depend on Chinese customers or suppliers could feel the squeeze if tensions keep rising. And anyone tracking regional markets has October 2, 2026, marked on the calendar, because the EU's verdict on this deal will signal how open Europe truly is to Chinese investment.
If the deal is blocked or saddled with heavy conditions, other Chinese firms may hesitate before pursuing European acquisitions. That could reshape the landscape for European retailers seeking buyers - and for investors holding stakes in them.
A block would set a precedent far beyond this single transaction. The final decision will reveal whether Europe's willingness to welcome foreign capital remains intact or if the door is closing for Chinese buyers.
The standoff is part of a broader pattern. Brussels has repeatedly accused Beijing of using state support to give Chinese companies an unfair advantage, and Beijing has countered that the EU's trade tools are being weaponized. China's recent export restrictions on European firms were a direct response to EU moves against Chinese and Hong Kong businesses approximating to sanctions.
This review of JD.com's Ceconomy purchase is the first test of the EU's Foreign Subsidies Regulation against a major Chinese acquisition. The outcome could shape how future Chinese investments in Europe are treated, especially in sectors like retail and technology. For European companies that might attract Chinese buyers, the uncertainty alone can affect valuations and deal timelines.
For investors, the key takeaway is that geopolitical friction now permeates corporate dealmaking. Watching how this case resolves offers a window into how open Europe remains to Chinese capital - and whether Beijing's pushback will force the EU to rethink its enforcement approach.
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