Outdated logistics threaten China's economic growth
China needs to bring its logistics infrastructure and supply chain management capabilities into the 21st century if it is to maintain its competitiveness in the global marketplace.
Studies show that logistics expenses in China are higher than in countries with mature logistics infrastructure, and this has pushed up the cost of its goods. Industry analysts and third-party logistics providers said these supply chain inefficiencies, left unchecked, would undermine China’s long-term economic growth. “Compared to developed countries where logistics costs are approximately 9 per cent to 10 per cent of GDP, logistics costs accounted for about 21 per cent of GDP in China,” said Jerry Hsu, president, Greater China area, DHL Express Asia Pacific, citing Ren Xingzhou, director of the Market Economy Research Department at the State Council’s Development Research Centre.
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