JD.com Ceconomy bid: China rejects EU subsidy probe

China said Wednesday that the European Union lacks jurisdiction to investigate Chinese e-commerce company JD.com over its bid for German electronics retailer Ceconomy.

China's justice ministry said the EU's cross-border investigation practices against Chinese entities were improper extraterritorial jurisdiction measures. It said no organisation or individual may execute or assist such measures.

The European Commission said in May it had opened an in-depth investigation into JD.com's bid on suspicion that it may have been boosted by state subsidies. The commission said a preliminary investigation indicated JD.com may have received foreign subsidies that distorted the EU internal market.

Brussels said the probe would assess whether any subsidies allowed JD.com to offer a high price for Ceconomy, distorting the acquisition process, and whether aid improved the competitive position of the merged company after the transaction.

JD.com has said the acquisition would not be financed by subsidies and denied receiving any aid linked to the transaction that might distort competition in the EU.