Trade has become part of the systemically important infrastructure – those who fail to protect it risk losing economic sovereignty

China deal divides Europe: Why France is blocking what Germany is waving through

It's a transaction that seems almost routine in the business news, but whose geopolitical implications can hardly be underestimated: the takeover of Ceconomy AG – and thus the traditional brands MediaMarkt and Saturn – by the Chinese e-commerce giant JD.com. While the German antitrust authorities largely wave the deal through without a murmur, viewing it as a purely market-driven affair, alarm bells are ringing in Paris. The French government is intervening massively to block access to its own retail chain, Fnac Darty.

This rift, which runs right through European economic policy, reveals a fundamental dilemma: Is retail trade in the 21st century merely a distribution channel for goods – or has it long since become a systemically important infrastructure whose wealth of data determines economic sovereignty?

The following article analyzes the dangerous naiveté of German regulatory policy in direct comparison to France's strategic foresight. It examines why retail chains are now massive data vacuums and gatekeepers, why the access of Chinese state-owned enterprises to European consumer data represents a security vulnerability, and why we urgently need to redefine what we understand as "critical infrastructure." Because those who fail to protect retail lose more than just market share—they lose control of their own economic future.

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• Power struggle over MediaMarktSaturn (Ceconomy): Is the takeover by JD.com, thought to be a sure thing, not so sure after all?

Europe's retail chains between economic sovereignty and global competition – The unequal response to Chinese expansion

MediaMarkt takeover: When data control becomes a question of power and what China's shopping giant really wants

The announced takeover of Ceconomy by the Chinese e-commerce giant JD.com and France's simultaneous intervention to protect Fnac Darty reveal a fundamental divergence in European economic policy. While Germany is allowing the €2.2 billion transaction to proceed largely unhindered, France is erecting regulatory barriers to prevent Chinese investors from indirectly accessing French retail structures. This case marks a turning point in the debate about whether retail chains should be considered strategic infrastructure – and what the consequences are of failing to recognize this.

The full economic impact of this development only becomes apparent upon closer examination. With the acquisition of Ceconomy, JD.com gains access not only to approximately 1,000 brick-and-mortar stores under the MediaMarkt and Saturn brands in eleven European countries, but also to annual sales of €22.4 billion, of which €5.1 billion is generated online. Even more significant is the indirect 21.8 percent stake in the French retail chain Fnac Darty, which JD.com automatically acquires. This arrangement potentially gives the Chinese corporation insight into consumer behavior, market dynamics, and the strategic planning of two of Europe's largest electronics retailers – a treasure trove of data whose strategic value can hardly be overstated.

The German Federal Cartel Office gave the green light for the transaction on September 18, 2025. The justification provided by Cartel Office President Andreas Mundt was formally correct, but strategically short-sighted: JD.com had previously only been active in Germany to a very limited extent, which is why the merger had few points of competitive contact. This purely antitrust-based assessment, however, systematically ignores the geo-economic dimension of the acquisition. While the Federal Ministry for Economic Affairs and Energy remains responsible for security policy aspects, this review has so far proceeded without any visible conditions or restrictions. The German reaction follows a pattern of restraint that differs fundamentally from French practice.

France's counter-proposal: State intervention and European alternatives

France chose a diametrically opposed path. The French Ministry of Economy actively intervened in Fnac Darty's ownership structure by imposing conditions that prevented JD.com and Ceconomy from increasing their stakes in the French company. This intervention did not take the form of an official ban, but rather the application of French investment screening regulations that impose restrictions on foreign investors in sensitive sectors. Roland Lescure, the French Minister of Economy, confirmed that talks took place with JD.com, in which the company had to pledge not to seek any further shares. This pledge became the de facto condition for tolerating the indirect participation through the Ceconomy takeover.

The French strategy, however, went even further. The government actively promoted a European alternative by supporting Czech billionaire Daniel Křetínský, who on January 26, 2026, made a takeover bid for Fnac Darty at €36 per share – a 19 percent premium over the previous closing price. Křetínský, who already held 28.5 percent of the shares, thus became the preferred option over potential Chinese influence. The French approach demonstrates a coordinated economic policy strategy that combines three elements: regulatory barriers for undesirable investors, active promotion of European alternatives, and proactive safeguarding of strategically important corporate structures.

The difference in national reactions reflects differing conceptions of sovereignty and economic security. For decades, France has defined eleven sectors that are protected from unwanted takeovers—including defense, energy, and IT companies. Foreign investors seeking to acquire more than a third of the capital of such companies require approval from the Ministry of Finance. This tradition of economic dirigisme, often criticized as protectionism, is proving to be a strategic advantage in the current geopolitical landscape. France explicitly treats certain economic sectors as an extension of state sovereignty—a view that Germany has traditionally rejected.

Germany, by contrast, follows a regulatory paradigm that limits state intervention to narrowly defined exceptions. While the Foreign Trade and Payments Ordinance was tightened in 2017 and 2018 to expand the federal government's powers to intervene in foreign takeovers, a transaction can be reviewed even with a 10 percent stake in particularly sensitive sectors—critical infrastructure, defense-related companies, media companies. However, the retail sector does not fall into this category. German regulatory practice primarily focuses on classic criteria for critical infrastructure: energy, water, healthcare, telecommunications, and finance. Retail remains outside this definition, representing a strategic gap.

Data Power and Gatekeepers: Redefining Critical Infrastructure

This gap becomes particularly problematic when considering the transformation of modern retail. Retail chains are no longer merely distribution channels for physical goods, but have evolved into data-driven platforms whose strategic value rests on three pillars. First, they collect granular data on the consumer behavior, preferences, and purchasing patterns of millions of consumers. MediaMarktSaturn alone serves 50 million loyalty card customers and records 2.2 billion customer interactions annually. This data enables predictions about demand trends, market developments, and economic cycles that extend far beyond the retail sector.

Secondly, large retail chains act as gatekeepers between manufacturers and consumers. They control not only shelf space but also increasingly digital visibility through retail media – a business area that already accounts for over 20 percent of digital advertising spending in Germany. Through the Ceconomy acquisition, JD.com gains access to this ecosystem and thus to insights into product launches, pricing strategies, and marketing campaigns of European and global manufacturers. Thirdly, retail data is increasingly interconnected with other sectors of the economy. The omnichannel strategy driven by MediaMarktSaturn, which integrates online and offline channels, generates real-time data on availability, logistics, and supply chains that is strategically relevant for the entire value chain.

Strategic Asymmetry: China's Access to the European Market

The geoeconomic dimension of this data control becomes clear in the context of China's industrial strategy. JD.com is not only China's largest retailer by revenue, but also an integral part of China's strategy for global expansion in key sectors. The company ranks 44th in the Fortune Global 500 and possesses highly developed logistics and e-commerce technologies. In China, over 90 percent of orders are delivered within 24 hours—a capacity based on data-driven optimization and AI-powered predictive models. Transferring these technologies to Europe would undoubtedly make Ceconomy more competitive. At the same time, however, data flows in the opposite direction, providing Chinese decision-makers with deep insights into European consumption patterns, innovation cycles, and market dynamics.

This asymmetric information structure has long-term strategic consequences. Since its "Made in China 2025" strategy, China has pursued the stated goal of catching up to or achieving global technological leadership in key industries. Trade data is a central input factor for planning industrial capacities, identifying market opportunities, and developing competing products. While European companies operate in fragmented national markets and often lack access to comparable data on Chinese consumers, JD.com, through its acquisition of Ceconomy, gains consolidated insights into eleven European markets. This information asymmetry exacerbates the existing distortion of competition caused by Chinese subsidies and industrial policy support.

Italy recognized this problem early on and, in December 2025, imposed strict conditions for the protection of personal data as a condition for the acquisition of Ceconomy. These conditions aim to control the flow of data to China and ensure that the personal information of Italian consumers is not passed on without restriction to JD.com or Chinese authorities. Germany and other EU member states have not yet taken comparable measures, even though the General Data Protection Regulation (GDPR) theoretically provides the framework for this. The discrepancy between the theoretical legal framework and its practical enforcement reveals a gap in European data sovereignty.

Against this backdrop, the French intervention at Fnac Darty must be understood as a preventive defense of economic sovereignty. Fnac Darty is not only an electronics retailer, but also a significant provider of cultural products—books, music, films—which in France are traditionally considered part of cultural identity and thus of national sovereignty. From a French perspective, Chinese influence on product range decisions, availability, and pricing of cultural goods would represent a loss of sovereignty that transcends purely economic considerations. This cultural policy dimension is almost entirely absent from the German debate, even though MediaMarkt and Saturn also sell media products.

The differing response patterns of Germany and France also reflect differing historical experiences with industrial policy and globalization. For decades, Germany benefited from open markets and an export-driven growth strategy. The ordoliberal tradition of the social market economy relies on functioning competition and rejects state intervention as a distortion of competition. This philosophy was successful in an era of relative geopolitical stability and rules-based multilateralism. However, in the current era of geoeconomic rivalry between the US, China, and Europe, it is increasingly proving to be a disadvantage, as other actors systematically employ industrial policy instruments to gain strategic advantages.

France, by contrast, has maintained a tradition of strategic autonomy and active industrial policy even in times of globalization. Historically, the French state has taken stakes in key companies, fostered national champions, and protected strategic sectors from foreign takeovers. This policy has often been criticized as inefficient and stifling innovation. However, in the current context, it is proving to be an institutional resource that enables rapid responses to geoeconomic threats. The French government possesses established legal instruments and administrative capacities to guide investment—capacities that Germany has deliberately neglected to develop.

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Long-term consequences: Technological dependence and risks to security of supply

The consequences of these differing approaches will become apparent in the coming years. JD.com plans to delist Ceconomy from the stock exchange in the first half of 2026 and has already secured 85.2 percent of the shares. The company has committed to retaining the MediaMarkt and Saturn brands, maintaining its headquarters in Düsseldorf, and refraining from layoffs for three years. These commitments offer short-term stability but do not create long-term obligations. After these periods expire, JD.com is free to make strategic decisions primarily serving Chinese corporate interests. The integration of Ceconomy into JD.com's global strategy could lead to a gradual shift of value creation, research, and strategic functions.

The issue of technology transfer is particularly sensitive. JD.com possesses advanced AI systems, logistics algorithms, and e-commerce platforms that are intended to benefit Ceconomy. However, the transfer of these technologies is not free; it creates dependencies. MediaMarkt and Saturn would become increasingly reliant on Chinese IT infrastructure, raising questions about cybersecurity and data sovereignty. Should geopolitical tensions between Europe and China escalate, this dependency could become a strategic risk. Experience with Russian energy supplies has demonstrated the vulnerabilities that can arise from unilateral dependencies.

The debate about the strategic importance of trade must also include the issue of supply security. During the COVID-19 pandemic and geopolitical crises, supply chains became critical bottlenecks. Large retail chains play a central role in the distribution of everyday goods, electronics, and increasingly, healthcare products through the sale of medical devices and health technology. A foreign owner, primarily committed to external interests, could, in crisis situations, prioritize deliveries in ways that run counter to European supply interests. This is not a hypothetical consideration: during the pandemic, various states attempted to withhold or divert medical protective equipment.

Another critical aspect is the question of fair competition. JD.com benefits from extensive government subsidies and favorable financing conditions in China, which are not available to its European competitors. The acquisition of Ceconomy grants the company access to the European single market without European companies receiving reciprocal access to the Chinese market. China rigorously restricts foreign investment in sensitive sectors and often requires joint ventures with technology transfer as a condition for market access. This asymmetric market opening undermines the long-term competitiveness of European companies.

Although the European Union introduced a foreign direct investment (FDI) screening mechanism in 2020, allowing member states to scrutinize investments in critical sectors, its implementation remains fragmented and varies nationally. While France, Italy, and Spain actively utilize these instruments, Germany and other northern European countries are hesitant. This inconsistency creates regulatory arbitrage opportunities: investors can choose countries with more lenient regulations as entry points and expand into European markets from there. The Ceconomy acquisition exemplifies this problem – JD.com gains access to France via Germany, despite French efforts to protect its foreign investors.

A plea for resilience: Paths to a sovereign European trade policy

The strategic lesson from this case lies in the need for a European trade policy that systematically considers aspects of sovereignty. This requires, firstly, expanding the concept of critical infrastructure to include data-intensive trade sectors that aggregate systemically relevant information about the economy and society. Secondly, it requires harmonized investment screening mechanisms at EU level to prevent individual member states from becoming gateways for undesirable takeovers. Thirdly, reciprocity must become a fundamental principle: market access should only be granted to the same extent that it is also available to European companies in third countries.

Fourth, economic sovereignty in data-intensive sectors requires clear rules for data transfers and storage. The GDPR provides a framework, but its enforcement in acquisitions by non-EU investors remains insufficient. Binding standards must be developed to ensure that personal and business-relevant data cannot flow freely to third countries, particularly where those countries have laws that compel companies to access the data. China's National Intelligence Law obliges Chinese companies to cooperate with security authorities—a regulation that fundamentally undermines European data protection standards.

Fifth, Europe must build its own industrial policy capacities to actively promote and protect strategic sectors. The Draghi report on European competitiveness from September 2024 powerfully demonstrated this necessity. Europe must stop accepting asymmetric globalization, where other actors pursue industrial policy while Europe limits itself to competition rules. This does not mean protectionism in the classical sense, but rather strategic autonomy: the ability to act independently in critical areas and pursue its own interests.

Supporting European alternatives, as France is doing with Křetínský at Fnac Darty, is one element of this strategy. Europe possesses capital and entrepreneurial expertise, but often lacks coordinated mechanisms to deploy these resources strategically. Creating European champions in key sectors—whether through mergers, joint procurement, or coordinated funding—would strengthen Europe's negotiating position with external actors. Fragmentation into 27 national markets with differing regulations remains the central handicap of European economic policy.

The Ceconomy-JD.com case is therefore more than just a single takeover. It marks a turning point in how Europe intends to shape its economic future. German passivity and French intervention exemplify two fundamentally different conceptions of economic policy in an era of geoeconomic rivalry. Germany continues to rely on a rules-based order and trust in market mechanisms. France pursues a strategy of actively safeguarding sovereignty, which understands state intervention as a legitimate instrument of economic policy.

The coming years will show which approach proves more sustainable. However, the signs indicate that a naive continuation of German restraint will come at a considerable cost. The loss of economic sovereignty is a gradual process – through individual acquisitions, data flows, and dependencies that initially appear harmless but, in their cumulative effect, create strategic vulnerabilities. Treating retail chains that serve millions of consumers and aggregate granular economic data as ordinary companies whose ownership structure is politically irrelevant demonstrates a failure to recognize the realities of the 21st century.

Trade has long been systemically important infrastructure. Those who fail to protect it risk losing economic sovereignty. This realization is gaining ground in France, Italy, and other member states. Germany faces a choice: either to cling to its dogmatic approach to economic policy and gradually lose its ability to act, or to undertake a strategic realignment that combines economic openness with sovereign control. The Ceconomy takeover is just the beginning. The real question is: Which economic sectors is Europe prepared to defend, and which will it leave to the whims of global powers? The answer to this question will determine whether Europe can survive as a sovereign actor in the geo-economic competition of the 21st century or become the economic periphery of global rivalries.

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