Reduced logistics costs to aid trade
Date：2024-12-19 11:09:57 Visit：20
China has unveiled a clear roadmap to drive down logistics costs, a strategic move that officials and analysts said is crucial for enhancing the competitiveness of the manufacturing industry, and strengthening the foundation of the country's real economy as a whole.
As the Chinese economy faces growth pressures, and with the external environment characterized by a rise of trade protectionism, the initiative could enhance the efficiency of economic operations and strengthen the competitiveness and profitability of the country's exporters, they added.
According to the plan, which was jointly issued in late November by the general offices of the Communist Party of China Central Committee and the State Council, the world's second-largest economy aims to establish a "unified, efficient and well-ordered logistics market" by 2027.
Specifically, the government has set a target of reducing logistics costs from the level of 14.4 yuan ($1.97) per 100 yuan of gross domestic product last year to 13.5 yuan by 2027.
"Logistics is the circulatory system that connects the various components of our real economy, from production to consumption, as well as the country's participation in global trade", said He Dengcai, vice-president of the China Federation of Logistics and Purchasing.
Despite ongoing efforts to reduce logistics expenses in recent years, China's logistics expenditure as a percentage of GDP remains relatively higher than that of developed economies, He said.
China's total logistics costs accounted for 14.4 percent of its GDP last year, while the ratio in developed countries like the United States and Japan hovered around 7-8 percent. This gap underscores the substantial work China still needs to do in building a truly integrated and cost-effective logistics network on par with its global peers, He said.
This seemingly small reduction could translate into annual savings of over 1 trillion yuan for businesses across industries. These freed-up resources can then be channeled toward innovation, capacity expansion and exploration of new export markets, He added.
This initiative is not about reducing the prices charged by logistics service providers or cutting into their profits. Rather, it's a strategic shift toward optimizing the entire logistics ecosystem through measures such as improving transportation structure and promoting multimodal transport, analysts said.
Efforts to better harness railway freight and unlock its full potential as a cost-effective logistics solution have been placed at the top of the plan, with more direct freight train services to be added.
