Labour has called on the Government to examine Chinese ecommerce giant JD.com's expansion in the UK, arguing that ministers should investigate whether the retailer has benefited from state subsidies that could give it an unfair competitive advantage over British businesses.

According to The Telegraph, Alicia Kearns, the shadow national security minister, has urged Parliament and regulators to "thoroughly scrutinise" JD.com's growth plans after the European Commission opened an in-depth investigation into the company's proposed €2.2 billion acquisition of German electronics retailer Ceconomy.

The Commission is examining whether the deal may have been supported by foreign subsidies, including financing, tax incentives and grants from China.

JD.com launched its Joybuy platform in the UK earlier this year and has been linked with potential acquisitions including Currys and Very Group as part of its wider European expansion – with talks over a potential takeover of the Sainsbury's-owned Argos collapsing in Autumn 2025.

Kearns said it was "fundamentally unfair" for British companies to compete with Chinese firms receiving subsidies that would be illegal under European rules, adding that JD.com's UK ambitions should be blocked if necessary "for our economic security".

The criticism comes as UK retailers continue pressing ministers to reform customs rules covering low-value imports. Goods worth less than £135 can currently enter the UK without customs duties, a system retailers argue gives overseas ecommerce businesses a pricing advantage. Last week, the Treasury said it would bring forward plans to abolish the relief, with the changes now scheduled to take effect in October 2028 rather than 2029.

Luke de Pulford, founder of the Inter-Parliamentary Alliance on China, told the paper that the current regime allowed "a Chinese state subsidised attempt to exploit import thresholds" and argued that the Government "must defend UK businesses from unfair competition orchestrated by a state which would happily wipe them out".

Joybuy operates differently from cross-border marketplaces by fulfilling UK orders from warehouses in Milton Keynes and Luton rather than shipping directly from China. The business has established a London headquarters, hired around 1,000 UK workers, including self-employed delivery drivers, and offers same-day or next-day delivery across much of Britain.

Responding to the criticism, a JD.com spokesperson said the 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 spokesperson added that Joybuy was providing "great value, trusted brands and fast, same-day delivery to more than 17 million Brits" during a period of cost of living pressures.

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