The Chinese economy remains robust and the export-oriented growth model is now witnessingsteady levels of domestic consumption and rising local demand that will all bode well for logistics growth inthe country. We have made only minor adjustments in our Q417 update. Freight volumes carried across allmodes will undergo steady growth in 2017 and there will be an increase in throughput for China's mainports. Robust private consumption and domestic demand uptick levels are driving growth, though theeconomic slowdown limits the potential. Ongoing projects and continuous investment, notably the One Belt,One Road initiative, will boost the economy and benefit freight sectors. The launch of new services in allmodes further contributes to our positive outlook.
Key Updates And Forecasts
The Chinese government is under pressure by the Donald Trump administration to address the tradeimbalances as Trump looks to address the US trade deficits with China. We expect trade regulatoryactivity to remain elevated as China looks to deepen trading relations with governments across the worlddisagreeing with Trump's isolationist views. China showed willingness to have free trade agreement talkswith the European Union, Canada and Mexico in Q217.