China's Ecommerce Giants Rush to Europe Amid US Tariffs, Boosting Logistics Landscape

Chinese ecommerce and logistics companies are rushing to Europe's warehouses due to US President Donald Trump's tariffs reshaping manufacturers' supply chains and markets. Companies like JD.com, Super Smart Service, and GLP are leasing large spaces across the UK, Germany, Poland, and Italy. The trade scenario has made Europe a competitive destination for Chinese firms, with potential for the strongest year in history for warehouse acquisitions.

Chinese e-commerce and logistics companies are making significant strides in securing large-scale warehouse spaces across Europe, driven by the reshaping of global supply chains due to US President Donald Trump's tariffs. Companies such as JD.com, Super Smart Service, and GLP are leading this expansion, with the UK, Germany, Poland, and Italy emerging as key destinations.

In the UK, Chinese firms have taken up more than 2 million square feet of space this year, potentially surpassing the 2.3 million square feet uptake seen during the height of the pandemic in 2021 [1]. Similar trends are observed across continental Europe, with an increase in inquiries from Chinese groups. Claire Williams, head of UK and European industrial research at Knight Frank in London, attributes this expansion to the trade policy shifts and the need for alternative markets to counter higher US tariffs.

Beijing-based JD.com has been particularly active, leasing 900,000 square feet across the UK this year as part of its push into the British market. The company has also secured space in Milton Keynes and has a distribution center in Coventry. Other notable firms such as Super Smart Service, Top Cloud Logistics, and Daals, a Chinese-owned furniture retailer, have also taken up significant space in the region.

The logistics vacancy rate in the UK remains high due to a supply glut following the pandemic-fueled boom in speculative development. However, the current trade scenario has made Europe an even more competitive destination for Chinese firms. GLP, a logistics real estate investor and developer, has leased nearly 400,000 square meters to Chinese e-commerce companies across the UK, Germany, Poland, and Italy over the past five years [2].

Poland is also a favored destination, particularly for fashion distributor Shein Group Ltd., which operates major distribution hubs in the Wroclaw area. The UK could also become attractive due to the lower tariff uncertainty compared to other countries. CTP NV, Europe’s largest publicly traded industrial property developer, is seeing increasing demand from Chinese manufacturers of computers and furniture, with Asian manufacturing tenants accounting for 20% of its leasing activity in the past 18 months [3].

The global equity markets are navigating a complex interplay of US trade policy uncertainty and China’s strategic adaptability in its manufacturing sector. While China’s domestic manufacturing PMI contracted to 49.4 in August 2025, export-driven firms have shown remarkable resilience, with the Caixin PMI rising to 50.5 in the same period. This resilience is due to China’s pivot toward high-value-added products and diversification of trade partners, mitigating the impact of US tariffs [2].

The trade scenario has prompted a shift in supply chains, with Asian equities benefiting as firms like Apple and Ford shift production to Vietnam and India. The Belt and Road Initiative (BRI) has further amplified China’s influence, with 114% growth in 2025 in investments to Southeast Asia and Africa, redirecting trade flows and reinforcing regional economic ties [2].

In conclusion, the rush to European warehouses by Chinese e-commerce and logistics firms reflects a strategic response to the reshaping of global supply chains due to US tariffs. This trend is set to continue, with the potential for 2025 to be the strongest year in history for warehouse acquisitions by Chinese firms in the UK.

References:
[1] https://www.bloomberg.com/news/articles/2025-09-04/china-firms-rush-to-europe-as-trump-upends-trade
[2] https://www.ainvest.com/news/china-manufacturing-resilience-implications-global-equity-markets-2509/
[3] https://www.ainvest.com/news/europe-ai-ascent-mistral-ai-strategic-bet-global-ai-arms-race-2509/