Chinese E-Commerce Companies Flee US for Europe

The U.S. tariffs on China are pushing the East Asian country toward Europe for manufacturing.

Some of the biggest e-commerce and logistics companies in China have been flocking to the European continent to beef up operations in the midst of President Donald Trump’s tariffs, Bloomberg reported.

In the U.K. alone, Chinese companies have grabbed more than 2 million square feet of space, which could eclipse the 2.3 million square feet they took up at the height of the pandemic in 2021, according to CoStar data cited by Bloomberg.

JD.com, based in Beijing, took up the most space in the U.K. with 900,000 square feet leased so far this year and counting. Part of its efforts include the expansion of Joybuy, an e-commerce platform selling food, clothing and groceries at a discount. The company picked up space in Milton Keynes and has a distribution center in Coventry.

At the same time, Top Cloud Logistics, Zong Teng Group subsidiary Super Smart Service, and Chinese-owned furniture retailer Daals have also taken up space.

It’s not just the U.K. that’s seen an uptick in Chinese presence. Landlords across Europe have seen an increase in inquiries from Chinese firms, according to Bloomberg.

“Europe is the last major market where Chinese firms can expand at speed, making them an increasingly important force in shaping the region’s logistics landscape,” Claire Williams, head of U.K. and European industrial research at Knight Frank, told Bloomberg.

The trend is expected to continue across the continent, as trade policy changes reshape the global logistics framework. Shein Group, for example, known for its fast fashion, operates major distribution hubs near Wrocław, Poland.

CTP NV, the largest publicly traded industrial property developer in Europe, has seen increased demand from Chinese manufacturers making computers and furniture. Normally, Asian manufacturing tenants have accounted for just over 10 percent of CTP’s leasing activity. But in the year-and-a-half period ending in June, they made up 20 percent of leasing activity in Europe.

It remains to be seen when or if the U.S. will strike a new trade deal with China, though Chinese manufacturers seem to be well-positioned in Europe regardless.

— Chris Malone Méndez