No discrimination
The Commission maintains that the FSR does not discriminate against companies on the basis of where they’re headquartered.
“The FSR is completely, fully compliant with WTO rules as it applies to all companies irrespective of their nationality, and its objective is to ensure that all companies doing business in the EU, including Chinese ones, are treated equally and compete on an equal footing,” spokesperson Ricardo Cardoso told reporters in Brussels on Thursday.
According to Beijing, the EU is requesting too much information as it investigates whether JD.com’s deal is unfairly backed by Chinese state support.
“In the JD.com case, the EU has again arbitrarily and unreasonably demanded a wide range of information from relevant Chinese banks that is irrelevant to the investigation,” the Ministry of Commerce spokesperson said.
The Commission worries that JD.com may be benefiting from unfair advantages in the form of preferential financing, tax incentives and grants provided by the Chinese government that could give it a competitive edge in the EU market once the transaction is finalized.
JD.com offered remedies this week to address the Commission’s concerns, in what is typically a sign that talks are at an advanced stage. The company declined to comment.