State Aided Chinese Fulfilment Houses in UK

The Chinese government is currently investing heavily in Chinese owned companies to setup fulfilment infrastructure throughout Europe and the UK.

Quote from Chinese Government Website:

“We will support enterprises to build overseas storage of export goods and overseas operation centers.”

One Chinese fulfilment house located in the UK states on their website:

“4PX employs over 1,500 employees across 50 different global locations. Its major investors include Singapore Post Limited and Shenzhen Capital Group (one of the China government’s largest investment companies).”

China has also invested heavily in the Silk Road Rail Project, a digital highway that enabled China-based cross-border e-commerce platforms in multiple languages to export Chinese goods worth 903.5 billion yuan ($140 billion; 120 billion euros; £105 billion) in 2017 to more than 200 countries and regions, serving more than 100 million consumers.

It is estimated that 30,000 Chinese Sellers joined Amazon.co.uk in the past 12 months.

China estimates cross border eCommerce trade will hit 2.16 trillion yuan or £243,000,000,000 by 2020. The UK being listed in the top 5 destinations of Chinese products sold via cross-border e-commerce.

Li Keqiang, the Premier of the People’s Republic of China, recently announced China was setting up new comprehensive cross-border e-commerce pilot zones in 22 cities, including Beijing, Hohhot, Shenyang, Changchun, Harbin, Nanjing, Nanchang, Wuhan, Changsha, Nanning, Haikou, Guiyang, Kunming, Xi’an, Lanzhou, Xiamen, Tangshan, Wuxi, Weihai, Zhuhai, Dongguan and Yiwu.

Chinese e-Commerce companies are encouraged to develop overseas warehouses and global marketing networks, cultivate their own brands and diversify export markets to boost foreign trade.

It seems our government is asleep at the wheel and completely unaware of the risks this will bring to the UK High St and Online Traders. In addition to that, out of date policies are ill prepared to manage the risk of non-compliant dangerous goods, safety standards and WEEE recycling laws.

We recommend the government implements policy changes extremely quickly.

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