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.
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
