Page 370 - 2021 White Paper
P. 370
1 White Paper on the Business Environment in China
2.8 Logistics
Key Take-Aways • There is a trend towards more direct
shipping out of China through digital cross-border
• The modern logistics system is an shopping channels, which helps alleviate some
important carrier connecting consumers and of the downtrend in Chinese exports driven by
producers, as well as a key part of China's the trade wars and increasing political tensions
domestic market. And it also provides strong between China and other countries.
support to build a new model of development in
which the domestic economic network takes the • Persistent uncertainty around US-China
primary role, with the domestic and international trade tensions is also pushing Chinese businesses
economic networks complementing each other. to look at different markets – and different
platforms.
• In the battle against the COVID-19
outbreak, China's logistics system was battered Background
early in 2020 but ultimately withstood the test of
pressure and time. However, problems remain Coronavirus continued to wreak havoc on retail
such as insufficient supply and the relatively low supply chains globally, even as China’s factories
level of development. come back online. Parcel volume fell 2.4% among
manufacturing customers in February 2020
• The nation's first freight airport is being compared with a year ago. Health-care parcel
built by SF Express in Ezhou, Hubei province. The volume dropped 2.2%, and parcel volume was
logistics hub is expected to come into operation down 1.8% in the automotive and auto-parts
by the end of 2021. Shanghai YTO Dragon sector. Business looked better by mid-March, but
Investment Development (Group) Co Ltd, the there were still issues affecting cargo movement,
parent company of YTO Express, is also planning including the availability of truck drivers to move
to build an international aviation logistics hub cargo to Chinese ports (Thomas). China's logistics
in Jiaxing, Zhejiang province. The hub, which will sector showed signs of recovery by mid-year as
involve a total investment of 6.61 billion RMB reopening of businesses gained more steam amid
(US$970 million), is expected to have an annual further containment of COVID-19, so much so
freight handling capacity of 2.4 million tons by that the logistics performance index, compiled by
2050 (China Daily, Logistics System). the China Federation of Logistics and Purchasing
(CFLP), was up 2.1% month on month to 53.6% in
Covid-19 Repercussions April (Xinhua, China’s Logistics).
• As Beijing tried to jump-start an economy Warehousing
hobbled by its coronavirus epidemic at the
beginning of the 2020, one of the biggest obstacles Logistics facilities and warehouses are in high
was the country’s half-paralyzed logistics industry. demand, with the crisis accelerating growth in
China has some of the world’s biggest and newest what was already the world’s largest e-commerce
seaports and airports, but using them became market. During widespread lockdowns due to
harder because of roadblocks, quarantines and the COVID-19 pandemic, consumers flocked
factory closings. Global shipping was one of the
biggest casualties (Bradsher and Chokshi).
370
2.8 Logistics
Key Take-Aways • There is a trend towards more direct
shipping out of China through digital cross-border
• The modern logistics system is an shopping channels, which helps alleviate some
important carrier connecting consumers and of the downtrend in Chinese exports driven by
producers, as well as a key part of China's the trade wars and increasing political tensions
domestic market. And it also provides strong between China and other countries.
support to build a new model of development in
which the domestic economic network takes the • Persistent uncertainty around US-China
primary role, with the domestic and international trade tensions is also pushing Chinese businesses
economic networks complementing each other. to look at different markets – and different
platforms.
• In the battle against the COVID-19
outbreak, China's logistics system was battered Background
early in 2020 but ultimately withstood the test of
pressure and time. However, problems remain Coronavirus continued to wreak havoc on retail
such as insufficient supply and the relatively low supply chains globally, even as China’s factories
level of development. come back online. Parcel volume fell 2.4% among
manufacturing customers in February 2020
• The nation's first freight airport is being compared with a year ago. Health-care parcel
built by SF Express in Ezhou, Hubei province. The volume dropped 2.2%, and parcel volume was
logistics hub is expected to come into operation down 1.8% in the automotive and auto-parts
by the end of 2021. Shanghai YTO Dragon sector. Business looked better by mid-March, but
Investment Development (Group) Co Ltd, the there were still issues affecting cargo movement,
parent company of YTO Express, is also planning including the availability of truck drivers to move
to build an international aviation logistics hub cargo to Chinese ports (Thomas). China's logistics
in Jiaxing, Zhejiang province. The hub, which will sector showed signs of recovery by mid-year as
involve a total investment of 6.61 billion RMB reopening of businesses gained more steam amid
(US$970 million), is expected to have an annual further containment of COVID-19, so much so
freight handling capacity of 2.4 million tons by that the logistics performance index, compiled by
2050 (China Daily, Logistics System). the China Federation of Logistics and Purchasing
(CFLP), was up 2.1% month on month to 53.6% in
Covid-19 Repercussions April (Xinhua, China’s Logistics).
• As Beijing tried to jump-start an economy Warehousing
hobbled by its coronavirus epidemic at the
beginning of the 2020, one of the biggest obstacles Logistics facilities and warehouses are in high
was the country’s half-paralyzed logistics industry. demand, with the crisis accelerating growth in
China has some of the world’s biggest and newest what was already the world’s largest e-commerce
seaports and airports, but using them became market. During widespread lockdowns due to
harder because of roadblocks, quarantines and the COVID-19 pandemic, consumers flocked
factory closings. Global shipping was one of the
biggest casualties (Bradsher and Chokshi).
370
