China’s transport restrictions have upended goods trade, Premier Li says in calling for logistical changes

Li Keqiang tells transport authorities that customs-clearance process must be faster and more efficient at major ports, to stabilise and protect the industrial supply chain

World Bank revises down its GDP growth forecast for China following disruptive outbreaks and lockdowns that have suppressed economy

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Road freight is responsible for more than 80 per cent of all freight transport in China, but the transport of goods between cities has been seriously impeded by strict zero-Covid restrictions. Photo: Bloomberg

Published: 9:00pm, 8 Jun 2022

China’s premier has instructed the nation’s transport authorities to better facilitate the movement of goods, as strict zero-Covid measures and regional outbreaks continue to take a hefty toll on the sector that is characterised by high mobility.

Meanwhile, the World Bank has revised its annual economic outlook for China in the wake of those highly disruptive outbreaks and lockdowns, owing to the impact they have had on the world’s second-largest economy.

As a guarantor of China’s economic development, road freight is responsible for more than 80 per cent of freight transport in the country.

However, as several cities and regions started reporting outbreaks of the highly contagious Omicron coronavirus variant, China’s road-freight activity fell by 26.6 per cent in April compared with the same month last year, and by 6 per cent cumulatively from January to April, according to industry data.

During a symposium at the Ministry of Transport on Monday, Premier Li Keqiang played up the importance of transport in a market economy, according to a Xinhua report.

He also said the government must focus on strengthening and protecting freight shipments in critically important industries and regions to ensure the smooth and essential flow of goods.

In May, under back-to-work and back-to-production initiatives, the nation’s transport and logistics sectors recovered somewhat, but not to normal levels.

A national road freight flow index compiled by a leading platform for the road logistics industry, G7 Smart, indicated that the flow of goods increased by 18.4 per cent in May from a yearly low reached in April.