CCCEU comments on the European Commission's In-depth Investigation under FSR into JD.com's Proposed Acquisition of CECONOMY

28 May 2026, Brussels

The China Chamber of Commerce to the EU (CCCEU) notes the European Commission's announcement on 28 May 2026 to open an in-depth investigation under the Foreign Subsidies Regulation (FSR) into JD.com's proposed acquisition of CECONOMY. This marks the first time a Chinese acquisition has been subject to a Phase II investigation under the new FSR. We attach great importance to this development and hope that the procedures willadhere to legal certainty, proportionality, and non-discrimination principles.

The CCCEU notes that one of the key focuses of the investigation is the assessment of whether alleged "foreign subsidies" may affect both the transaction process and post-transaction market competition. In this regard, we believe that any analysis must be strictly based on verifiable facts and clear legal standards, and should not generalise normal corporate financing capacity, market-driven operational efficiency, or competitive advantages arising from innovation and supply chain capabilities as so-called "market distortions."

The Commission has indicated that it will examine whether subsidies contributed to a higher acquisition price. The Chamber considers that price premiums are common in merger and acquisition practice, as transaction prices are driven by multiple market factors, including expected synergies, technological integration value, and long-term growth expectations. In assessing the impact of subsidies, the use of a "high price" as an indicator should be approached with caution. Conclusions should not be drawn solely from outcomes, and a clear causal relationship should be established on the basis of sufficient evidence.

The CCCEU has long expressed serious concerns regarding certain structural issues in the implementation of the FSR, including the overly broad scope of foreign financial contribution definitions, an imbalance in the burden of proof, high compliance costs for enterprises, and issues related to extraterritorial application and resulting legal conflicts.

Earlier, China's Ministry of Commerce concluded in January 2025 that certain EU practices under the FSR constitute barriers to trade and investmentand called for corrective measures. In May 2026, China's Ministry of Justice (MOJ), pursuant to the Regulations of the People's Republic of China on Countering Foreign States' Unlawful Extraterritorial Jurisdiction,determined that the EU's cross-border investigative measures targeting the Chinese security firm Nuctech under the FSR constitute improper extraterritorial jurisdiction. Against the backdrop of increasing global regulatory density, the Chamber believes that it is important to ensure that relevant measures remain consistent with international law and established jurisdictional principlesso as to avoid unintended extraterritorial effects and resulting uncertainty for cross-border business activities and international investment.

We also call on the EU side to take an objective view of the competitive advantages arising from the efficiency improvements of Chinese enterprises. Such competitiveness, formed through technological capability, logistics systems, and operational efficiency, is fundamentally driven by market forces. This is particularly evident in highly competitive and rapidly evolving sectors such as e-commerce. In relevant assessments, such advantages should be properly distinguished and objectively considered, to avoid a regulatory approach that gradually shifts from correcting market distortions towards over-interpreting normal competitive outcomes.

In the context of rising global economic uncertainty and increasing complexity in cross-border investment, policy stability and predictability have become key determinants of market confidence. In recent years, Chinese enterprises have continued to expand investment in Europe, contributing to Europe's digital transformation, green development, and consumer market vitality through localisation, technological innovation, supply chain development, and job creation. As a normal practice in market economies, mergers and acquisitions should be assessed within a stable, transparent, and rules-based framework. At a time when China-EU economic relations are at an important stage of development, maintaining an open, fair, transparent, and non-discriminatory business environment serves the common interests of both sides.

The CCCEU will continue to closely follow the development of the case and stands ready to maintain constructive engagement with relevant stakeholdersto promote the stable and sustainable development of China-EU tradeand investment relations.