DHL in China: why the express leader left domestic parcels to focus on Chinese exports

Updated on August 31, 2026

DHL exited domestic express and contract logistics in China, and now invests in the international routes that Chinese exporters use.

By Daxue Consulting

In August 2026, DHL completed its largest investment in mainland China: a €177 million expansion of its “Super Gateway” at Shenzhen Bao’an airport. The expansion triples capacity to about 900 metric tons of shipments a day and creates more than 1,000 jobs (DHL Group, August 2026). It also opened a daily Boeing 767 freighter route from Shanghai to Bangkok, Bahrain and Brussels.

DHL no longer delivers domestic parcels in China. It sold its domestic express business in 2011 and its Chinese contract logistics business to SF Holding in 2019. What it kept is international express and freight, the segment where its global network and customs expertise are hardest to replicate. This analysis of DHL in China examines the decisions behind this strategy, the changing map of Chinese exports and the implications for international B2B and logistics firms.

DHL in China: key figures

Exhibit 1: International parcels are about 2% of China’s express volume, the segment where foreign firms compete

Sources: as listed in each row; table designed by Daxue Consulting.

Four decisions shaped DHL’s position in China

1986: a joint venture with Sinotrans. DHL entered China through DHL-Sinotrans International Air Courier, a joint venture with Sinotrans (中国外运). DHL Group CEO Tobias Meyer called the partnership “a key milestone” for DHL in China (China News Service (中国新闻网), January 2025).

2011: exit from domestic express. In July 2011, DHL sold its three domestic courier companies, after losses in a market dominated by low-cost Chinese couriers and after the 2009 Postal Law closed domestic letter delivery to foreign firms. Letters and documents represented about 35% of DHL’s domestic volume at the time.

The economics of the domestic market explain why the exit has not been reversed. In 2025, Chinese express companies earned on average about RMB 7.5 per parcel (RMB 1.49 trillion for 198.95 billion parcels). At that level, profit depends on national density and automation, which Chinese couriers built over a decade. International shipments are only about 2% of volume, but they carry far higher value per parcel and depend on customs know-how and foreign networks, where DHL’s assets still count.

2019: contract logistics sold to SF. DHL sold its supply chain business in mainland China, Hong Kong and Macau to SF Holding (顺丰控股) for US$793 million, with a ten-year revenue-sharing agreement and a co-branded company, SF DHL Supply Chain China (FreightWaves). DHL presented the deal as a way to access China’s domestic market through a Chinese partner.

2024-2026: investment in export routes. DHL’s Strategy 2030 prioritizes e-commerce, life sciences and healthcare, and new energy. In China, the group invests in infrastructure, greener aircraft, warehousing with Chinese partners and support for Chinese companies going abroad (China News Service). The Shenzhen gateway and the Shanghai-Brussels route follow from this.

China’s export routes shifted after the end of US de minimis

On May 2, 2025, the United States ended the de minimis exemption for low-value parcels from China and Hong Kong. Low-value e-commerce shipments from China to the US fell 43% in May from April, and Chinese sellers shifted volumes to Europe, Southeast Asia and Latin America (Asia Financial, July 2025). In 2024, low-value e-commerce had represented 55% of air freight from China to the US, against 5% in 2018.

DHL’s new route through Bangkok and Bahrain to Brussels, and its focus on the Middle East, Africa, Latin America and India, are consistent with this new map. Tobias Meyer told China News Service that “the next China is still China.”

Exhibit 2: DHL and SF Express play complementary roles

Sources: DHL Group, China News Service, FreightWaves; table designed by Daxue Consulting.

Digital channels serve as service tools for B2B clients

The official 中外运敦豪 WeChat account and mini-program handle booking, tracking, customs documents and customer service, while Weibo carries corporate news and recruitment. Cross-border sellers compare DHL, FedEx, UPS and SF on price, speed and customs clearance in forums, WeChat groups and on Zhihu.

How DHL’s China business has changed over the past decade

Exhibit 3: From a service for multinationals in China to a bridge for Chinese exporters

Daxue Take: implications for international B2B and logistics firms

1. For foreign service firms facing Chinese leaders at scale, DHL’s exit from domestic express suggests that segments driven by volume, low prices and policy are difficult to hold. Where a firm has no cost or regulatory advantage, focusing elsewhere may preserve capital.
2. Where a Chinese champion dominates a segment, a partnership can be worth more than a market share: the SF deal brought cash, a revenue share and access to domestic flows. This requires governance that protects the foreign brand’s standards.
3. For firms with international networks, the link between China and other markets, customs expertise and trust in Europe remain harder for Chinese competitors to replicate quickly. The advantage could narrow as SF and Cainiao build overseas networks.
4. For B2B firms looking for growth, Chinese companies expanding to the Middle East, Africa, Latin America and India are an increasing client base.
5. For any China export plan, trade rules outside China, such as the US de minimis change, can move flows within weeks; monitoring US and EU policy is part of the plan.

Questions for leadership teams: Which segments in China can the firm defend? Would a Chinese partner add more than a direct presence? Which destinations will Chinese clients ship to next?

What to watch next

• Volumes through the Shenzhen gateway and new freighter routes.
• EU discussions on duties for low-value e-commerce parcels.
• SF International and Cainiao’s overseas network expansion.
• China’s international express volume for 2026 (State Post Bureau).

FAQ about DHL in China

What does DHL do in China? DHL focuses on international express and freight. It sold its domestic express companies in 2011 and no longer delivers domestic parcels.

Who is DHL’s partner in China? DHL’s express business runs through DHL-Sinotrans, a joint venture with state-owned Sinotrans since 1986. In contract logistics, DHL works with SF Holding, which bought its China supply chain business in 2019.

How big is DHL’s investment in China? Its largest investment in mainland China is the €177 million expansion of the Shenzhen gateway, completed in 2026, which triples capacity to about 900 metric tons a day.

How did the end of US de minimis affect shipping from China? After the US ended the exemption for low-value parcels from China on May 2, 2025, low-value e-commerce shipments to the US fell 43% in a month. Volumes shifted to Europe, Southeast Asia and Latin America.

About Daxue Consulting

Daxue Consulting is a market research and strategy consulting firm focused on China. For logistics and B2B service companies, Daxue Consulting sizes segments in China and on export routes, maps Chinese and foreign competitors and partners, conducts B2B interviews with shippers, forwarders and platforms, and assesses joint venture or distribution partners. Related analyses cover B2C websites in China and cross-border e-commerce in China. Learn more about our business strategy services or contact our team.

Author: Daxue Consulting