China blocks cooperation with EU probe into JD.com acquisition

China has instructed its entities not to cooperate with the European Union’s investigation into Chinese firms, escalating tensions between Beijing and Brussels. This development is part of a broader trade and regulatory dispute, with the EU probing JD.com’s planned acquisition of Germany’s Ceconomy under its Foreign Subsidies Regulation. Beijing has condemned the EU’s actions as an overreach of extraterritorial jurisdiction. The directive represents a shift from diplomatic protest to a formal blockade, utilizing new domestic legal measures to hinder the EU inquiry. Key Takeaways China’s directive against assisting the EU probe suggests heightened China-EU tensions, potentially affecting Chinese firms like Alibaba. Pricing in prediction markets suggests a decrease in the likelihood of Alibaba’s removal from the Chinese Military Companies list. Recent market movements show a decline in YES outcome support, with odds decreasing from 26% to 24.5% over 24 hours. What to Watch Observers should monitor further diplomatic exchanges between China and the EU, as additional retaliatory measures by either side could influence market perceptions. Any statements or policy shifts by key actors, s...