China aims to lower the ratio of the society’s total logistics costs to GDP to about 13.5% by 2027, according to an action plan for effectively reduce the logistics costs across the society released by the State Council.
By then, China will achieve breakthroughs in the reform of the transportation system, increase the proportion of rail freight volume and rail freight turnover to about 11% and 23%, respectively, and foster a number of internationally competitive modern logistics companies, according to the plan.
It urges financial institutions to increase financing support for the logistics industry, innovate financial products and services, and provide long-term and stable financing to help reduce logistics costs.
The plan emphasizes promoting the digitization and intelligent transformation of logistics and advocates for major breakthroughs in logistics technology, the widespread application of big data, 5G, and the BeiDou Satellite Navigation System, and the development of “AI + Modern Logistics.”
It supports new logistics models that integrate with the platform economy, low-altitude economies, and autonomous driving, and it aims to optimize management standards, support commercial innovation, and encourage logistics technology platforms and leading enterprises to empower small and medium-sized logistics enterprises with digital capabilities.
It also highlights efforts to develop modern logistics leaders and specialized “little giant” enterprises, support aviation logistics companies in expanding all-cargo aircraft fleets, and promote logistics firms’ specialization in areas such as multimodal transport, smart logistics, cold chain logistics, and vehicle logistics to develop unique competitive advantages.