The launch of JD.com’s UK retail platform, Joybuy in April this year should be regarded as more than simply the arrival of a new e-commerce player. Backed by warehouse acquisitions in Milton Keynes and Coventry and a major domestic hiring push, China’s largest retailer by revenue is signalling its long-term intent to operate in Europe.
In February 2025, Goodcang (Zongteng Group) Logistics further developed our working taking partnership by four units at GLP Mönchengladbach Regioparkring logistics centre in Germany, covering a combined area of approximately 65,000 sqm. Goodcang Logistics (soon to be rebranded as Cirro Logistics) is a brand of Zongteng, one of the fastest growing Chinese crossborder e-commerce service providers, supporting both the Shein and Temu businesses in Europe.
Goodcang plans to use the units to expand its integrated overseas logistics and fulfilment operations in Germany. Goodcang was already renting two units in the building and the additional units provide a total area of approximately 98,000 sq m, making this one of the largest lettings of the year in Germany.
These are not isolated cases but part of a broader movement stretching back several years: Chinese businesses are increasingly establishing physical footprints in Europe, and they are doing so with serious intent.
For logistics and industrial real estate players, this marks the emergence of a structural trend. Over the past five years, GLP has leased close to 400,000 square metres of logistics space to Chinese businesses across Europe. From leading cross-border platforms to niche product distributors, we are seeing growing demand for high-spec, scalable, and compliant logistics solutions that can support rapid market entry and sustainable growth.
The Drivers Behind Chinese Expansion into Europe
At the heart of this trend is a desire for strategic diversification. With global trade dynamics evolving, Europe represents a relatively stable and commercially attractive region for long-term investment.
On the consumer side, European customers increasingly demand faster and more reliable access to Chinese goods. Platforms like Shein and Temu have accelerated expectations for delivery times and service levels, raising the bar for fulfilment infrastructure. To meet this demand, Chinese e-commerce players are recognising the necessity of establishing operations closer to the end consumer.
The data reinforces this. According to the China Chamber of Commerce in the UK, 92% of Chinese firms anticipate stable or growing revenues in the coming years, with profitability already reaching a five-year high. These are not speculative ventures—they are strategic moves backed by strong confidence in the region’s potential.
Overcoming Operational and Regulatory Complexity
However, setting up in Europe is not without its challenges. For Chinese businesses accustomed to a more unified regulatory landscape, the continent presents a patchwork of rules and standards. From differing fire safety requirements to labour regulations and ESG mandates, operating across multiple jurisdictions can quickly become overwhelming.
This is where having experienced local partners can make a critical difference, particularly in the case of pan-European operators who can simplify regulatory complexity. Partners who offer not only high-quality warehouse space in strategic logistics corridors, but also deep market insight, operational guidance, and embedded services tailored to the unique needs of Chinese entrants.
For instance, understanding local planning processes, construction codes, and sustainability regulations enables faster onboarding and helps customers remain compliant while scaling. This also includes support on localisation efforts by facilitating bilingual communication, offering ESG advisory services, and maintaining a presence in critical port-adjacent hubs like the Netherlands, Germany, and Poland—regions that serve as gateway nodes into Europe’s largest consumer markets.
Partnering for Long-Term Success
The growing influx of Chinese occupiers is reshaping what it means to be a logistics provider. It is no longer enough to be a landlord; the role is evolving into that of a strategic enabler.
It’s about more than just providing real estate. It’s about offering an ecosystem of support—from development and fit-out to compliance and operational onboarding. While having the scale across Europe is crucial in helping businesses grow quickly, with local teams ensuring solutions are grounded in real-world experience.
This is especially critical for companies that value speed and flexibility. Chinese firms entering Europe are often operating on compressed timelines. The ability to deploy turnkey solutions—whether in the UK, Germany, or Spain—can make the difference between a successful market launch and a costly delay.
Chinese companies are no longer just exporters—they’re becoming deeply embedded in the European value chain. To support this new shift, the logistics sector must evolve accordingly.
This means embracing a more holistic, partner-driven approach—one that offers not just buildings, but the capability to help businesses navigate complexity, unlock new markets, and grow sustainably.
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