JD.com's founder Richard Liu is making bold moves. Former rivals in e-commerce, both JD.com and Alibaba have now turned their attention to Hong Kong, engaging in a strategic "long-distance competition."
In October, Alibaba and Ant Group announced a HK$7.2 billion investment to purchase multiple floors of the One Island East office tower in Hong Kong’s Causeway Bay, marking the city’s largest office transaction since 2021. Not to be outdone, JD.com followed suit in December with a HK$3.473 billion acquisition of partial office space in the China Construction Bank Tower in Central Hong Kong.
The back-to-back property purchases by these tech giants have stirred market excitement. However, unlike past rivalries, this competition carries deeper strategic implications. Both companies are doubling down on Hong Kong investments, reflecting confidence in the market and proactive positioning for a new business cycle.
**JD.com’s HK$3.47 Billion Hong Kong Expansion** Hong Kong’s Lai Sun Group recently disclosed the sale of Surearn Profits Limited, which holds partial ownership of the China Construction Bank Tower, spanning approximately 11,202 square meters (including shared areas). The buyer was a JD.com-controlled investment entity.
JD.com stated that the acquisition aligns with its long-term commitment to Hong Kong, where it plans to further invest in supply chains, retail, logistics, and R&D integration. The China Construction Bank Tower, formerly the Ritz-Carlton Hong Kong, is a prime Grade-A commercial landmark in Central.
This move is far more than just securing office space—it’s a strategic step in JD.com’s globalization playbook. The company has been deepening its Hong Kong presence since 2015, establishing logistics and e-commerce operations. In 2023, JD Logistics expanded with multiple self-operated fulfillment centers.
**Richard Liu’s Accelerated Push** Since returning to frontline management, Liu has ramped up JD.com’s Hong Kong initiatives. In March, he visited Hong Kong University of Science and Technology (HKUST), exploring AI and drone projects—a precursor to November’s announcement of a joint AI supply chain lab with HKUST.
Other milestones include JD.com’s August acquisition of Hong Kong supermarket chain Kee Bo and a September partnership with China Resources Land to open its first JD Mall in Wan Chai by 2026. Soon, JD Industrials will list in Hong Kong, marking Liu’s sixth publicly traded company.
**Global Ambitions and Localization Strategy** Liu has long emphasized globalization as critical to JD.com’s survival. In June, he candidly admitted that JD.com had stagnated over the past five years, prompting a strategic pivot toward international markets.
Hong Kong serves as a testing ground for JD.com’s localization strategy—understanding consumer habits, regulatory compliance, and local hiring—before expanding into Southeast Asia and beyond.
**Internet Giants’ Overseas Rush** JD.com isn’t alone. Alibaba, Xiaohongshu, and Meituan are also doubling down on Hong Kong. Xiaohongshu leased office space in Times Square, while Meituan’s KeeTa became Hong Kong’s top food delivery platform within months of its 2023 launch.
As domestic growth plateaus, China’s tech titans are looking abroad. Meituan founder Wang Xing once outlined three paths for the internet’s "second half": innovation, deep-market penetration, and globalization.
The new era demands global vision. True industry leaders don’t chase short-term wins—they build enduring value. With giants like JD.com forging ahead, the next chapter in global tech competition is just beginning.
Comments