An ambitious undertaking could help China reduce its per-unit logistics cost by 6.3 per cent in three years, as the country seeks to empower its domestic market and boost offshore competitiveness amid escalating trade protectionism.
The world’s second-largest economy aims to establish a “unified, efficient and well-ordered logistics market” by 2027. And for every 100 yuan (US$13.79) of gross domestic product that China creates, the logistics cost is expected to be trimmed from last year’s rate of 14.4 yuan to 13.5 yuan, according to a new seven-part action plan posted on the government’s official website.
“[We will] address chokepoints in international logistics … and enhance the service and security of international supply-chain logistics,” Meng Xiaoyu, deputy director of transport services at the Ministry of Transport, said on Thursday at a briefing for the plan.
Compared with the logistics costs in 2023, the move is estimated to save more than 1 trillion yuan (US$138 billion) and benefit manufacturing industries that are the backbone of the Chinese economy.
The initiative came as the world’s second-largest economy seeks to shore up its exports to counter the potential impact of US president-elect Donald Trump’s ramped-up tariff threats, also as part of China’s efforts to bolster domestic demand and revive its role in driving the national economy amid heightened external uncertainties.
Three main features of the plan involve highlighting areas of reform and innovation; clearing bottlenecks; and systematic planning and promotion efforts.
Overall, there is still relatively large room to lower logistics costs across society
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