China unveils first 5-year plan to modernise logistics sector

According to the five-year plan, China will promote the use of green packaging materials, prioritise the development of cold chain logistics, and further reduce energy use and emissions in the logistics sector.

Other key measures in the plan include improving modern logistics systems by taking steps such as accelerating the digital and smart upgrading of the transportation, delivery, storage, and packaging sectors and strengthening weak links in rural areas and cold chain logistics.

China, which has the world's largest logistics sector, leads all countries in terms of cargo transport volume and number of shipments. The total revenue of the logistics sector reached 12 trillion yuan ($1.74 trillion) in 2021, according to the National Development and Reform Commission (NDRC).

China’s logistics sector is facing challenges, including disparities between eastern and western regions and urban and rural areas in terms of infrastructure and services offered, as well as a relatively small number of logistics businesses that compete globally, Zhang Jiangbo, deputy head of the department of trade at the NDRC, said during a press conference last week.

Another key area of the plan is to lower the cost of logistics services in general by means such as implementing tax and fee cuts and resolving gridlocks troubling the sector.

The significance of the sector's role in stabilising the national job market is also emphasised in the plan, as over 50 million people are now employed in logistics-related industries, Zhang added.

Zhang also emphasised that the government will strengthen support for the rise of new business models in the sector and encourage job creation. Also, more steps will be taken to protect the legitimate interests of workers.

The five-year plan also highlights the need to ramp up the development of international logistics networks, including improving the organisation of China-Europe freight train services, moving forward with the development of overseas warehousing and encouraging major logistics providers to improve their global service networks.

According to the plan’s document, China will work towards achieving better alignment in standards for quarantine, certification, inspection, and customs clearance with other countries in order to boost international logistics services.

Fibre2Fashion News Desk (DP)