China Is Building Its Logistics Network Inside America
When de minimis closed, Chinese sellers didn't leave. They moved in. Chinese-owned and proxy warehouses are expanding across every major U.S. port and population center to serve sellers across all major U.S. marketplaces — Amazon, Walmart, TikTok Shop, Temu, and more — and CFIUS can't review them.
The Scale of the Expansion
5.6M
sq ft leased by Chinese 3PLs in NJ alone (2024)
63%
of Savannah industrial leasing — Chinese 3PLs
20%
of all new U.S. warehouse leases (Q3 2024)
Chinese logistics companies leased 5.6 million square feet of industrial space in New Jersey through Q3 2024 — nearly triple what they leased in 2023. In Savannah, Chinese 3PLs accounted for 63% of year-to-date leasing in the 138-million-square-foot industrial market. Prologis VP Cassie Hanavich confirmed the figure. Colliers principal Hilary Shipley called 2024 “definitely the year of the Chinese 3PL.”
Source: Bisnow — Chinese Logistics Operators Ramp Up U.S. Warehouse Presence
The Companies Operating on U.S. Soil
These are not fly-by-night operations. They are building permanent logistics infrastructure inside the United States.
Western Post
HQ: Shenzhen, ChinaFounded 2015. 25+ warehouses, 3.3M sq ft globally. U.S. hubs: Los Angeles, New Jersey, Chicago, Houston, Pennsylvania. Ocean freight, customs handling, warehousing, last-mile.
Source: Western Post Group; CB Insights
COPE Services / COPE Logistics
HQ: Chinese-owned (acquired by Shanghai-based YQN Link)Only Chinese company among 64 Amazon FBA On-Site suppliers in the U.S. 1.7M+ sq ft across the U.S. 2024: established nationwide 2-day delivery with 400K sq ft East Coast + 750K sq ft Southern warehouse.
Source: COPE Services
Lecangs (subsidiary of Loctek)
HQ: Loctek — Chinese publicly traded manufacturer1.2M sq ft warehouse in Perris, CA. Owns 21 warehouses globally, 10 in the U.S., totaling ~7.1M sq ft. Fulfills across all major U.S. marketplaces: Amazon, Walmart, Wayfair, Home Depot. Serves 1,000+ e-commerce businesses.
Source: Lecangs
Elogistek
HQ: Founded by Zongteng Group (Chinese)Main office: Fontana, CA. Processes 20,000+ orders daily. 2-day delivery covering 85% of U.S. One-stop: maritime transport, customs clearance, warehousing, delivery.
Source: Elogistek; SFL Worldwide
COSCO Shipping — State-Owned, DoD-Designated
On January 7, 2025, the U.S. Department of Defense added COSCO Shipping Holdings and two subsidiaries to its list of Chinese Military Companies under Section 1260H of the FY2021 NDAA. Justification: COSCO transports military goods for the People's Liberation Army (PLA).
Source: DoD Federal Register; Maritime Executive
COSCO still operates in U.S. ports
Joint venture terminals at ports of Los Angeles, Long Beach, and Seattle. Logistics hubs in Wilmington CA, Chicago, Dallas, Charleston, Savannah, Atlanta. The DoD designation is informational — it does not carry automatic sanctions. COSCO can still operate.
The Long Beach Precedent
When COSCO acquired OOCL in 2018, CFIUS deemed ownership of Long Beach Container Terminal a national security risk. COSCO was forced to sell — ultimately for $1.78 billion to a Macquarie-led consortium. This proved CFIUS can act on strategic logistics — but only for acquisitions, not leases.
Source: FreightWaves
The CFIUS Blind Spot
Chinese companies are leasing millions of square feet with no obligation to notify the U.S. government. Here's why:
Urbanized Area Exception
Real estate transactions within "urbanized areas" (Census Bureau definition) are NOT covered — unless near specific military installations. Most commercial warehouse leases in metro areas are exempt.
Source: K&L Gates; US Treasury FAQ
No Mandatory Filing
Unlike other CFIUS-covered transactions, real estate transactions have NO mandatory filing requirement. Chinese companies can lease warehouses with no obligation to notify CFIUS.
Source: Morgan Lewis; Torres Trade Law
2024 Proposed Rule Didn't Fix It
A July 2024 proposed rule expanded CFIUS jurisdiction by adding military installations to the covered list. But it explicitly did NOT amend the urbanized area exception.
Source: DLA Piper
UniUni — The Last-Mile Takeover
$285M
Total funding raised
65%
of U.S. population covered
1M
packages delivered daily
Founded 2019 in Vancouver. Key investors: Alibaba's venture capital arm (since founding), Sinovation Ventures (Beijing, founded by Kai-Fu Lee), Rockets Capital (Beijing PE). Revenue growth: 12,854% over three years (Deloitte Fast 50). Key clients: Shein routes ~40% of North American volume through UniUni. Temu: ~30% of volume — by 2025, 90% of standard Temu orders go to UniUni post-customs.
Labor Concerns
Gig drivers paid $1.50–$2.20 per package. FLSA lawsuit filed March 2026 in Western District of Texas (Chasco et al v. UniUni Logistics) alleging below-minimum-wage pay on 16+ hour routes without overtime.
Source: eMarketer; Justia Docket
The Port Crane Backdoor
ZPMC (Shanghai Zhenhua Heavy Industries) holds nearly 80% of the ship-to-shore crane market at U.S. ports. A joint investigation by the House Select Committee on CCP and Homeland Security found ZPMC installed unauthorized cellular modems on cranes at U.S. ports — creating potential surveillance backdoors. ZPMC repeatedly requested remote access. The committees described the cranes as a potential “Trojan horse” for the CCP.
Source: House Select Committee on CCP; CNN