Some of China’s biggest e-commerce and logistics companies such as JD.com Inc are making a beeline to Europe’s warehouses once again, as US President Donald Trump’s tariffs reshape manufacturers’ supply chains and markets.

In the UK, for instance, Chinese firms have taken up more than two million square feet of space this year, potentially on track to beat the 2.3 million square feet uptake at the height of the pandemic in 2021, according to data from CoStar. A similar phenomenon is playing out across continental Europe, with landlords noticing an increase in inquiries from Chinese groups.

“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,” said Claire Williams, head of UK and European industrial research at Knight Frank in London. This is set to continue due to trade policy shifts, she added.

Though the world’s two largest economies have yet to reach a deal over tariffs, manufacturers in China have been seeking alternative markets for their goods as they brace for higher US tariffs. That is prompting logistics firms to expand their footprint in Europe, marking the second wave of a warehouse boom that started in the continent during the pandemic, which had upended supply chains and prompted nearshoring. 

Beijing-based JD.com made up the bulk in the UK, leasing 900,000 square feet of space across the country so far this year. This comes amid a big push into Britain, as the distributor earlier this year launched Joybuy, an e-commerce platform selling discounted food, clothing and groceries. The company has also secured space in Milton Keynes and has a distribution centre in Coventry. 

Source: The Edge Malaysia