Italy’s government has given its conditional approval to Chinese e-commerce behemoth JD.com’s takeover of German electronics retailer Ceconomy, utilizing its robust “golden power” legislation to safeguard national strategic interests.
This conditional clearance, issued by Rome’s cabinet on November 24, signals a pivotal juncture in European-Chinese economic relations, demonstrating the increasing use of national security tools to manage foreign direct investment (FDI), particularly in sectors linked to technology, data, and critical retail infrastructure.
The $2.5 billion German-Chinese deal is structured to grant JD.com, through its subsidiary Jingdong Holding Germany, at least a 31.74% stake in Ceconomy, the parent company of major European electronics chains MediaMarkt and Saturn. Crucially for Italy, the transaction includes the transfer of ownership of the MediaMarkt and Saturn brands operating in Italy through electronics retailer MediaWorld.
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The government’s decision to impose unspecified “prescriptions” to clear the transaction speaks directly to a broader, pan-European trend of “de-risking” economic engagement with Beijing.
The Rise of EU FDI Screening
Italy’s intervention with its “golden power” is a localized manifestation of a sweeping regulatory transformation across the European Union. For the better part of the last decade, high-profile Chinese acquisitions—such as ChemChina’s takeover of Pirelli and the Chinese Midea Group’s acquisition of German robotics firm Kuka—triggered a profound debate over strategic dependencies, technology transfer, and economic sovereignty.
In response, the EU adopted the FDI Screening Regulation in 2019, creating a formal framework for member states to share information and coordinate reviews of foreign investments that could pose a threat to security or public order across multiple member states. This framework, now part of the EU’s larger economic security and “de-risking” strategy, has encouraged nations like Italy to strengthen their own defensive mechanisms.
While the overall volume of Chinese M&A in Europe has declined significantly from its 2016 peak—partially due to Chinese capital controls—the deals that do proceed are increasingly concentrated in sensitive sectors, including digital, electronics, and health, keeping regulatory scrutiny high.
Why MediaWorld Triggers the Golden Power
The Ceconomy acquisition, while ostensibly retail, carries significant strategic weight that triggers Italy’s security concerns. The “golden power” is applied because MediaWorld operates critical consumer electronics infrastructure and collects vast amounts of customer data. The conditions Rome imposed, the specific nature of which remains confidential, are almost certainly designed to mitigate risks in areas such as:
- Cybersecurity and Data Protection: Ensuring that critical customer and commercial data remains compliant with EU standards and is not subject to extraterritorial access by a foreign state.
- Supply Chain Resilience: Guaranteeing the security of supply for vital electronic components and consumer goods, a vulnerability exposed during the global pandemic and geopolitical shocks.
- Technological Leakage: Preventing the transfer of sensitive operational know-how and advanced digital supply chain technologies from the German and Italian operations to China.
This regulatory caution is further fueled by geopolitical concerns that China is progressively diverting goods at lower prices to EU markets as a way of compensating for lost U.S. trade following the tariff policies adopted by President Donald Trump. JD.com, which competes globally with rivals like Alibaba and Amazon, is viewed not just as a retailer but as a sophisticated logistical and technological platform, making its entry into the European market a subject of national security, not just competition law.
The Italian cabinet’s decision, therefore, is not an isolated event but a clear signal that the era of unfettered Chinese acquisitions of European technology and strategic assets is over. The approval is conditional, reflecting a new European paradigm where investment is welcome, but control over strategic sectors must be guarded through state-level intervention to ensure “open strategic autonomy.”