Labour has been urged to investigate Chinese retail giant JD.com’s UK expansion amid concerns it could pose an unfair threat to British retailers.
The calls come after the online retail group, which owns Joybuy, stepped up its push into the UK as it looks to challenge Amazon and other major ecommerce players.
According to reports from The Telegraph, Alicia Kearns, the shadow national security minister, said JD.com’s growth plans in Britain should be “thoroughly scrutinised” by Parliament and relevant agencies.
She raised concerns over allegations that the Chinese retailer may have benefited from state subsidies, following a decision by the European Commission to open an in-depth investigation into JD.com’s proposed takeover of German electronics retailer Ceconomy.
The Commission said last month that it had preliminary concerns that JD.com may have received foreign subsidies that could distort the EU internal market.
Kearns said it was “fundamentally unfair” to expect British and other companies to compete with Chinese groups receiving subsidies that would be illegal in Europe.
JD.com, sometimes described as China’s answer to Amazon, launched Joybuy in the UK earlier this year as part of a wider European expansion.
The retailer sells products across categories including electronics, beauty, homeware, groceries and pet supplies, and has been promoting fast delivery through its UK distribution network.
Joybuy already has a UK head office in London and distribution centres in Milton Keynes and Luton, allowing it to offer next-day delivery to millions of households.
The business has also been linked with potential UK acquisitions, including previous interest in Currys and Argos, as well as reports of a possible bid for Very Group.
The calls for scrutiny come as UK retailers continue to pressure the government over competition from overseas ecommerce platforms.
Last week, the Treasury said it would bring forward plans to scrap customs duty relief on low-value imports by six months, with the changes now due to come into force in October 2028.
The loophole currently allows goods worth up to £135 to be imported without customs duty, a regime UK retailers argue has handed an advantage to overseas online sellers.
However, the British Retail Consortium said the revised timetable still “does not go far enough”, warning that domestic retailers remain under pressure from fast-growing overseas platforms.
JD.com has sought to position Joybuy differently from ultra-low-cost marketplaces such as Shein and Temu, with a focus on branded goods, local warehousing and fast delivery.
However, its arrival has intensified concerns over the growing influence of Chinese retail platforms in the UK market.
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