China Logistics

With double digit growth in the Chinese economy set to be a thing of the past, the entire logistics industry faces a prolonged period of uncertainty. However while growth will slow, China will remain more insulated from the global financial crisis that may hit many other economies. Though still dependent on exports, internal consumption is increasingly an engine for economic growth.

The Chinese economy has been heavily dependent on logistics since its growth as an exporting nation, which began in the late 1980s. However, it needs to develop its logistics market, management, and hinterland physical infrastructure, both in terms of quality and quantity, if current levels of development are to be maintained.

Reflecting trends in the global economy, growth in the industry has slowed recently, and will continue to do so in the coming years. Sectors such as container transport will be the hardest hit, while those catering to domestic consumption will be more robust. As Chinese companies consolidate and move to optimise operations, many will look to overseas enterprises for expertise and investment opportunities.