Swiss logistics giant doubles down on China amid AI boom and Chinese MNCs' global expansion

Swiss logistics giant Kuehne+Nagel will continue to invest and seek deeper cooperation in China, thanks to the surging demand for data centers and the continued globalization of Chinese multinational companies, the enterprise's CEO Stefan Paul said.

Paul said this during an interview on Saturday in a prelude to the 38th International Business Leaders' Advisory Council for the Mayor of Shanghai to be held one day later.

Globally, more companies are moving to the cloud, and large language models have become more prevalent. These have driven demand for data centers, which has in turn spurred demand for end-to-end logistics services, including vendor management, first-mile pickup at sourcing locations, inbound air freight, customs clearance, on-site delivery and last-mile execution, Paul said, adding that $7 trillion is expected to be invested globally in this sector by 2030.

Against that backdrop, Kuehne+Nagel has begun discussing end-to-end supply chain capabilities with Chinese AI companies to help the latter become global, both in the domestic marketplace from a sourcing inbound perspective and overseas, Paul said.

While China used to serve as a "workbench" for the world, its role has been changing over the past few years as the country focuses more on its own brands. Chinese companies have become more global, aiming to ensure their products reach more end consumers in different marketplaces.

Therefore, Kuehne+Nagel has signed 25 master service agreements with Chinese multinationals to help them drive revenues in international markets, according to Paul.

China's high-end manufacturing and biotech sectors now present new opportunities for cross-border logistics, he added. The trend is especially noticeable in healthcare, where the company supports clinical trials, first-mile distribution, and temperature-controlled vaccine corridors globally.

In late September, Kuehne+Nagel signed a memorandum of understanding with Chinese battery giant CATL to deepen cooperation in battery logistics, freight electrification and carbon reduction.

While Kuehne+Nagel started a couple of years ago to invest heavily in EV or battery vehicles, the attempt was mainly for short hauls within 200 kilometers of city limits. The cooperation with CATL will help the 136-year-old Swiss company expand into long-haul trucking.

Despite the headwinds regarding geopolitical relations and tariffs, Paul remains optimistic about global trade. China and Southeast Asia, as well as the Americas, will be the two major powerhouses for global trade, he said.

"Freight will always find its way, and there is always a global trade pattern that is growing year after year," he said.

Paul underscored China's centrality to global logistics.

For one thing, one-third of all containers globally are China-related, either import or export, which gives a glimpse of China's importance. Therefore, Kuehne+Nagel plans to hire more sales and business development workers in the country to further expand its current 3,500 headcounts, Paul said.

On the other hand, Shanghai can mirror the ongoing progress made in China, where the level of digitalization and automation and the speed of innovation are "second to none". Shanghai Port, handling over 55 million TEUs in 2025, has remained the world's busiest container port for 16 consecutive years.

Shanghai has also reflected China's shift from production to services. Given the current global landscape, Shanghai should use AI as an enabler to make it more resilient, according to Paul.

"Shanghai has all the necessary ingredients: the appetite, the willingness to go beyond limits," Paul said.