The Conservative Party has urged the UK Government to examine Chinese retail group JD.com over fears its UK growth could unfairly threaten British high street businesses, reported the Telegraph.
Alicia Kearns, shadow National Security Minister, said claims that JD.com had gained from Chinese state subsidies must be examined closely, following the company’s recent UK debut under its Joybuy brand.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
JD.com has also looked into possible takeovers of Currys and Argos, and has reportedly considered approaching Very Group, once part of the Barclay family’s business holdings.
The call comes after the European Commission (EC) launched a detailed investigation into whether JD.com received foreign subsidies – including financing, tax breaks and grants from China – that may have distorted competition within the EU’s internal market.
The probe followed JD.com’s €2.2bn offer for German electronics retailer Ceconomy.
Kearns said: “JD.com is already under investigation by the EU, and has now turned its greedy gaze to our shores, eyeing up acquisitions of Argos and the Very Group. It is fundamentally unfair to expect British and other companies to compete with Chinese groups receiving subsidies which would be illegal in Europe.”
She added that JD.com’s expansion should be “thoroughly scrutinised by Parliament and relevant bodies” and “if necessary for our economic security, blocked”.
Luke de Pulford, founder of the Inter-Parliamentary Alliance on China, separately urged tighter rules on tax loopholes that he said benefitted Chinese retailers over British competitors.
Current regulations allow overseas sellers to send parcels worth under £135 ($178.6) to the UK free of customs duty.
The government has moved up plans to close this “de minimis” exemption, shifting the start date from 2029 to October 2028, although retailers including Next, Sainsbury’s and Currys argue this remains too gradual.
The customs rule covers items bought directly through JD.com’s main site and shipped from China but excludes Joybuy orders, which are dispatched from UK warehouses in Milton Keynes and Luton.
Joybuy has recruited 1,000 UK workers, including self-employed delivery drivers, since its launch.
A JD.com spokesman told the publication that the company had told the EC that its proposed Ceconomy acquisition “will not be financed by any foreign subsidies granted by China or any other non-EU member state, but instead is funded by external private bank debt and available cash from ordinary course business activities”.
The spokesman added that Joybuy was “offering great value, trusted brands and fast, same-day delivery to more than 17 million Brits” amid cost of living pressures.
