China Blocks Data to EU Regulators

China has ordered its companies not to provide information to Brussels in investigations conducted under the EU's Foreign Subsidies Regulation (FSR), according to Politico.

Beijing specifically cited the case of Chinese giant JD.com, which plans to acquire Germany's Ceconomy, the parent company of electronics retailer MediaMarkt, for €2bn ($2.2bn).

The European Commission is examining whether JD.com is gaining a competitive advantage through Chinese state support, such as preferential financing, tax breaks or grants. Beijing claims that Brussels is demanding excessive information and using the rules against Chinese companies.

The Commission denies any discrimination, noting that the FSR applies to companies regardless of origin. The dispute comes amid intense negotiations between the EU and China on trade relations, including the EU's trade deficit with Chinese goods, which stands at approximately €1bn ($1.1bn) a day.

A videoconference between the Commission and the Chinese Ministry of Commerce is expected in September, ahead of European Commissioner Maros Sefcovic's trip to Beijing in October. According to MEP Dirk Gotink, Chinese intervention could also jeopardize the Ceconomy deal itself.

(mja)