China’s Unveiling of the First Five-year Logistics Modernization Plan

China’s Unveiling of the First Five-year Logistics Modernization Plan

China has released its first five-year plan for the growth of a modern logistics industry until 2025, emphasizing the necessity of fostering the sector's digital transformation, boosting business competitiveness, and enhancing the caliber and effectiveness of logistics services.

The government will prioritize the development of cold chain logistics, encourage the use of green packaging materials, and further cut energy use and emissions in the logistics sector, according to the plan made public by the General Office of the State Council on December 15.


Other important efforts include strengthening weak points in rural areas and cold chain logistics, as well as boosting the digital and smart upgrading of the transportation, storage, delivery, and packaging sectors.

China currently boasts the greatest logistics industry in the world, topping all other nations in terms of the volume of cargo transported and the number of shipments. The National Development and Reform Commission estimates that in 2021, the industry's total revenue would be 12 trillion yuan ($1.74 trillion).

At a press conference on December 29, Zhang Jiangbo, the deputy head of the NDRC's trade department, stated that China's logistics industry is struggling due to differences in infrastructure and service availability between urban and rural areas, as well as the country's relatively small number of globally competitive logistics companies.

He said that a number of initiatives included in the most recent five-year plan, such as those to enhance service quality and efficiency and improve the sector's business environment, have been enacted to provide logistics service providers a competitive edge.

The agreement also aims to reduce the cost of logistics services generally by adopting tax and charge reductions and resolving industry-wide deadlock.

Given that there are currently over 50 million people working in companies related to logistics, Zhang said the plan places a strong emphasis on the sector's importance in stabilizing the country's job market.

He added that more measures will be implemented to safeguard the rights of workers and that the government would increase its support for the development of new business models in the industry.

The policy document also emphasized the need to accelerate the development of global logistics networks, including better freight train service coordination between China and Europe, advancement of global warehousing, and encouragement of major logistics service providers to expand their global service networks.

To improve international logistics services, China will also endeavor to improve standards for quarantine, inspection, certification, and customs clearance with other nations.