China Issues Guidelines to Promote Development of its Logistics Industry
Gov.cn reports that China's State Council has issued new guidelines to promote the development of and resolve long-term problems facing the country's logistics industry. Among other things, the article states that China will reduce tax burdens on logistics enterprises, accelerate reform in the logistics management system, reallocate logistics resources, promote the innovation and application of logistics technologies, and invest more in the sector.
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Also Encouraging Consolidation of Industry
The article notes that China has encouraged big logistics enterprises to consolidate the fragmented industry through mergers and acquisitions, and small and medium-sized enterprises to consider forging alliances for common development. Local governments are also required to invest more in the construction of logistics infrastructure and provide necessary capital support to key logistics companies.
Land Policies Play a Role too
China will also give further favorable land policies for those in the industry and promote convenient transport of logistics vehicles. Farm produce logistics will be given priority, and government departments will improve coordination to accelerate the development of the country's logistics sector, the statement said.
Pledge to Cut Fees and Road Tolls
In addition, statistics showed that road tolls accounted for nearly one third of the operational costs of logistics enterprises, which not only weighed on the companies' profit margins but also reduced logistics efficiency. To tackle the problem, the country pledged to cut fees and road tolls by gradually eliminating tolls on secondary roads, reducing toll gates and restricting the number of toll ways, according to the guidelines.