China rolls a new 'five-year plan' to modernise its logistics system
China struggled to deal with high demand levels in the past two years, says experts
After a few very challenging years, China released a new five-year plan to modernise and introduce developments to the country’s logistics system. The unexpected surge in demand China witnessed in the past two years showed some weaknesses in its infrastructure and the need for a more resilient supply chain.
According to Xinhua, China’s official state news agency, the plan will cover the current period through to the year 2025, claiming that by then, “a modern logistics system featuring supply-demand adaptation with internal and external connectivity will basically be in place.”
Local news discussed the top issues China wants to tackle during this period. The key issues China wants to prioritise are developing cold chain logistics, increasing the use of sustainable packaging material and reducing energy emissions in the sector, reported China Daily.
The plan will also invest in digital solutions that facilitate transportation, storage, delivery and packaging.
In a news conference, Zhang Jiangbo, deputy head of the department of trade at the National Development and Reform Commission (NDRC), said the country spotted disparities between eastern and western regions in terms of infrastructure and services.
As a result, the plan will include strengthening weak links in rural areas and increasing the competitiveness of logistics services providers.
Despite the difficulties China’s supply chain faced during the pandemic, it is still home to the largest logistics sector with the highest cargo transport volumes. According to the NDRC, the industry's total revenue reached nearly $1.74 trillion in 2021.
Source: China Daily, Xinhua, Global Times
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