Chinese expansion reshapes Europe’s logistics and ecommerce landscape
Europe’s logistics and fulfilment sector is undergoing a wave of transformation as Chinese eCommerce players accelerate their expansion across the continent.
Rising tariffs in the United States have prompted manufacturers and distributors to redirect strategies towards Europe, driving demand for warehouse space and reshaping the regional supply chain landscape.
In the UK alone, Chinese companies have leased over 2 million square feet of space so far this year, with take-up levels on track to surpass the highs of the pandemic-era boom. Similar momentum is building across continental Europe, where developers report a surge in enquiries from Chinese occupiers eager to establish a foothold in Europe’s consumer markets.
The appeal is clear: Europe represents the last major market where Chinese firms can scale rapidly. Warehouse acquisitions and fulfilment investments are now being fuelled by eCommerce platforms, manufacturers and suppliers seeking to secure access to consumers within the EU and UK.
One of the most visible moves has been the rapid growth of JD.com, which has secured nearly 1 million square feet of distribution space in Britain this year alone, including new facilities in Coventry and Milton Keynes. Other major players are following suit, with additional deals expected to make 2025 a record year for Chinese warehouse acquisitions in the UK.
The activity extends far beyond Britain. Over the past five years, logistics developers have leased hundreds of thousands of square metres to Chinese firms across Germany, Poland, and Italy. Poland, in particular, has emerged as a hotspot, hosting large fulfilment operations for fast-fashion retailer Shein, while Central and Eastern Europe hubs attract computer and furniture manufacturers seeking to serve the European market directly.
This influx comes against a backdrop of shifting global trade flows. Higher US tariffs, combined with lingering memories of pandemic disruption and supply chain shocks such as the Suez Canal blockage, have accelerated diversification strategies. For many Chinese companies, Europe offers both resilience and growth potential.
Developers are seeing the impact in their leasing data. Asian tenants traditionally accounted for just over 10% of activity, but in the past 18 months this has doubled to 20%, with Chinese firms making up half of that figure. Their pace of expansion highlights not only the competitive push to capture European market share but also the urgency with which supply chains are being reconfigured.
Despite this demand, Europe’s logistics property market remains complex. In the UK, vacancy rates are at their highest since 2011 following a wave of speculative construction, yet space in the right locations is being quickly absorbed by new entrants. The competition between local retailers, global manufacturers and Chinese newcomers is ensuring that Europe remains one of the most dynamic fulfilment markets worldwide.
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Contact Logicall today to learn how our omnichannel fulfilment solutions can scale with your business.