WSJ What’s News – The ‘New Silk Road’ of Cheap Chinese Goods

Date: December 18, 2025
Host: Luke Vargas
Key Contributors: Hattie Moyer, Chelsea Delaney

Episode Overview

This episode spotlights the unexpected routes and networks bringing a surge of cheap Chinese goods—especially via e-commerce giants like Temu and Shein—into Europe. The discussion explores the so-called “new Silk Road” logistics network, the impact of regulatory changes in the US and Europe, and the resourceful strategies Chinese exporters and immigrants are using to reach European consumers.

Key Discussion Points & Insights

Major News Headlines (00:33–04:44)

• US Politics & Economy
  • President Trump’s address claims economic wins, announces a “warrior dividend” of $1,776 for active duty troops funded by tariffs.
  • Hints at the most substantial tax refund season ever and potential $2,000 checks for lower-income Americans, with concern from congressional Republicans about deficit implications.
  • Inflation data anticipated; housing costs claimed to be dropping.
  • Trump advised by Alan Dershowitz on possible constitutional ambiguity about a third term; White House reaction teases a longer Trump presidency (03:10).
  • Approval of $11B in US arms sales to Taiwan sparks condemnation from Beijing.
  • Notable quote (re: Taiwan arms sales):
    “Any efforts to arm Taiwan will backfire and that they basically wasting Taiwanese people's hard earned money to buy weapons.”
    — Chinese Foreign Ministry Spokesperson [03:27]
• Other Key Business Items
  • US government accepts fault for a fatal helicopter/aircraft collision near Washington, D.C.
  • Warner Bros pushes back on Larry Ellison’s role in the Paramount Skydance takeover.
  • Activist investor Elliott Investment Management takes a $1B stake in Lululemon.
  • The IRS escalates its fight with Meta (Facebook), using a new “periodic adjustment” approach to target $16B in profits they claim should be US-taxed, highlighting shifting global tax enforcement.

The New Silk Road: Flood of Chinese Goods to Europe (07:43–12:05)

Setting the Scene (07:43–08:13)

• Chelsea Delaney joins to discuss what she calls a “shadow logistic network” powering a $1 trillion Chinese goods surplus and its unexpected pathways into Europe.
  • Quote: “After the Liberation Day tariffs everyone was sort of worried about China sending a lot of cheap goods to other places… One of the areas that was particularly vulnerable ... was de minimis exports.” [08:13]

How Chinese E-commerce Giants Shifted Focus (08:13–09:18)

• US closes the de minimis loophole (allowing low-value goods to enter the US duty-free), causing Chinese platforms like Temu and Shein to divert attention to Europe.
• Massive surge of TikTok/social media ads in Europe for “0-euro Temu hauls”.
  • Quote: “So if you go on TikTok, you’ll see hundreds and hundreds of videos of these like 0 Euro, 0 pound Temu hauls… all this stuff you can get for free.” — Chelsea Delaney [08:39]

The Logistics Pathway: Unexpected Airports (09:18–10:23)

• Pandemic-era demand triggers new courier airlines focused on this Chinese goods traffic.
• Goods routed through new “Silk Road” connections: from China to Central Asia (Uzbekistan, Kazakhstan), then to Europe.
• Major entry points are not traditional hubs but smaller, sometimes rural airports like East Midlands in England, military airbases in Hungary, and Liege in Belgium.
  • Quote: “You would maybe think that this stuff would all be going to London or Frankfurt or Paris, but it’s actually not... East Midlands Airport… tractors on the road.” — Chelsea Delaney [09:34]

Hyper-local Fulfillment: The “Family Warehouse” Model (10:23–11:19)

• Shipping Model:
  • Direct-to-consumer drop shipping from Chinese factories.
  • Or, use of “overseas family warehouses”—often homes or backyard sheds built by Chinese immigrants, storing and re-packaging goods locally.
    • Memorable Moment: “We spoke to one person who built a shed in their backyard in London. They store these packages from the Chinese exporters and then ... ship them off.” — Chelsea Delaney [10:40]
    • Some individuals are making as much as £5,000/month doing this repackaging and shipping.
• Upstart logistics companies (MyFreighter, OneAir) are eating into market share from legacy carriers.

Regulatory Backlash: Europe Awakens (11:19–11:59)

• De Minimis Loophole:
  • US action to close it pushed the trade to Europe.
  • Europe beginning to levy new fees on small packages (starting next year); UK lags behind, possibly until 2029.
  • Quote: “Yeah, this big open window is starting to get a little bit more shut in Europe as well.” — Chelsea Delaney [11:59]

Timestamps of Key Segments

• 00:33 – Opening headlines: tariffs, US economic policy, arms to Taiwan
• 03:27 – Beijing’s strong response to Taiwan arms sales
• 04:44 – Ad break (skipped)
• 05:16 – Elliott Investment takes stake in Lululemon; IRS escalates fight with Meta
• 07:43 – Introduction to the New Silk Road topic
• 08:13 – Chelsea Delaney on how US policy shifted Chinese e-commerce focus to Europe
• 09:27 – Wild new logistics pathway: small European airports and rural hubs
• 10:40 – The “family warehouse” phenomenon; homes in London becoming storage/shipping centers
• 11:37 – Regulatory response: Europe to start closing de minimis loophole

Notable Quotes

• “You would maybe think that this stuff would all be going to London or Frankfurt or Paris, but it’s actually not. A lot of it is going to small airports in the UK... There were sheep nearby and there were tractors on the road.”
  — Chelsea Delaney [09:34]

• “We spoke to one person who built a shed in their backyard in London. They store these packages from the Chinese exporters and then they package them up themselves when the order comes in and then they ship them off.”
  — Chelsea Delaney [10:40]

• “Yeah, this big open window is starting to get a little bit more shut in Europe as well.”
  — Chelsea Delaney [11:59]

Episode Tone

The conversation is brisk and businesslike, with a sense of fascination at the sheer ingenuity, scale, and speed of the new cross-border logistics systems. The tone is explanatory and occasionally playful, especially when describing the quirky and hyper-local European “family warehouse” model. There’s an undercurrent of concern about regulatory whack-a-mole as Chinese exporters continually adapt to new restrictions.

Summary

This episode offers a rapid, vivid tour of how policy changes, opportunistic logistics, and social media have combined to reroute a torrent of cheap Chinese goods into Europe, revealing a web of shadow supply chains—from rural English airstrips to backyard sheds. It underscores both the global power of e-commerce and the challenges regulators face in keeping up. The reporting is packed with surprising details, memorable images, and forward-looking questions about the next moves from both shippers and regulators.