New Challenges Face by Chinese Logistics Industry in 2008

减小字体 增大字体 作者:李海峰  来源:www.zhonghualunwen.com  发布时间:2009-12-02 01:22:56

  During the 10th Five-Year Plan period,China's logistics industry experienced quick growth.According to the statistics of National Development and Reform Commission,National Bureau of Statistics of China and China Logistics and Purchasing Association,in the 10th Five-Year Plan period,the total amount of social logistics reached RMB178.6 trillion,increasing 1.5 times compared with that of the 9th Five-Year Plan period,with an average annual growth of 25%,which is much higher than the GDP growth rate of 10.5%.The ratio of the total amount of social logistics against GDP dropped from 19.4% in 2005 to 18.6% in 2007.In 2007,the amount of China's logistics exceeded RMB 1.5 trillion,with a annual increase of 13.6%,took 18.2% of the added values of servicing industry.
  In recent years,China's logistics market is opening up to the outside world.Obviously,the state-owned,private-owned and foreign-funded enterprises are surviving and thriving in the competitive markets.According to the commitments of Chinese Government when entering WTO,China has opened up the market of logistics industry since December 11,2005.The year of 2008 is the year that China's foreign trade is heavily affected by the world economy,while Chinese logistics industry is facing the same issues both domestically and internationally.
  Without doubt,China's logistics industry is having a period of fast growth with the economic development and the increased acceptance of outsourcing by Chinese manufacturers and retailers.However,there are also a number of challenges faced by Chinese logistic companies.The economy has to go through a major restructuring which will be needed to transform its many state-owned enterprises into private sector.One problem for the country is that increased economic activity has led to rising labor costs especially in key regions of manufacturing and logistics.This will increase pressure on inefficient public sector companies and eventually lead to higher levels of unemployment.This will be increased by foreign competitors entering the market in line with China's WTO commitments.
  "If China's economy does have a 'hard landing' as many economists predict,there will be a major impact on air,sea,express and logistics companies which have over invested in capacity in the region."Insider says,"For the time being,though,the fragmented,low value-add nature of the Chinese transport market will still provide huge opportunities for foreign,and the more developed domestic players,to grab market share.There is no doubt that China will eventually become the world's industrial powerhouse.However,its transformation will not be as straightforward as many logistics companies would like to hope."
     Economy imbalance
  China's economy has wide variances in levels of activity and development.There is a major imbalance of goods flows from the developed east of the country to the more undeveloped west.This has resulted in difficulties in finding supports,leading to higher costs for Chinese haulage companies which transfer cargo among regions.Internationally these imbalances also exist between China and the rest of the world,leading to difficulties in re-positioning empty containers.
  Domestic trade barriers
  Although China's entry to WTO has lowered trade barriers such as tariffs and quotas for international shipments,there are still problems related to moving goods around China itself.There are unofficial border tolls when goods move between provinces.This is particularly evident when shipping from an inland manufacturing location to a port city.
  Poor infrastructure
  One of the key challenges facing the Chinese logistics industry is the status of the country's transport infrastructure.At present,despite some large scale projects,companies in the region complain of insufficient integration of transport networks,information technology(IT),warehousing and distribution facilities.Outside of the main economic centers,the logistics sector tends to be of low quality,highly inefficient and with little technological competence.
  Unsound regulation
  Although it is slowly opening up to outside competition,the Chinese transportation and logistics market is one of the most highly regulated market in the world.Regulation exists at a number of different levels,imposed by national,regional and local authorities.Regulations often differ from city to city,hindering the unity of national networks.
  Culture & Administration
  Getting for any logistics project in China still relies heavily on the strength of contacts which companies have within Chinese bureaucracy.There are still high levels of private relationship which require companies to build links with the government at various levels.Many western companies also find it difficult to have the profits which have been generated in the country.

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作者:李海峰
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