China's Justice Ministry Bans Enforcement of EU Probe into JD.com as Improper Extraterritorial Jurisdiction
China's Ministry of Justice, together with the Ministry of Commerce and other departments, has determined that the European Union's cross-border investigation practices against Chinese entities in its probe of JD. com under the EU Foreign Subsidies Regulation constitute improper extraterritorial jurisdiction. The ministry announced on August 19 that no organization or individual may execute or assist in executing the measures, effective immediately. A ministry spokesperson warned that China will resolutely counter in accordance with the law if the EU persists.
On August 19, the Ministry of Justice issued an announcement determining that the European Union's practices in its foreign subsidy investigation constitute improper extraterritorial jurisdiction. In accordance with Articles 3 and 6 of the Regulations of the People's Republic of China on Countering Improper Extraterritorial Jurisdiction, the Ministry of Justice, together with the Ministry of Commerce and other relevant departments, investigated and determined that the EU's cross-border investigation practices against Chinese entities in its probe of JD. com under the EU Foreign Subsidies Regulation constitute improper extraterritorial jurisdiction measures. The announcement requires that no organization or individual may execute or assist in executing such measures, and it takes effect from the date of publication.
On the same day, a spokesperson for the Ministry of Justice answered reporters' questions on the matter. The spokesperson said that the EU's investigation of JD. com under the Foreign Subsidies Regulation, which demands extensive and unnecessary information from Chinese entities within China's territory, constitutes improper demands imposed on the relevant entities. The Ministry of Justice, in accordance with the Regulations of the People's Republic of China on Countering Improper Extraterritorial Jurisdiction, together with the Ministry of Commerce and other relevant departments, identified and determined that the EU's practices constitute improper extraterritorial jurisdiction measures. The spokesperson also said that if the EU persists in its course, China will resolutely counter in accordance with the law.