China targets lower logistics costs to boost economy and competitiveness

Premier Li Qiang tells a State Council meeting that ‘digital, smart and green’ development of the sector would help make the economy more efficient

Beijing is banking on trade-led growth to counter problems in the domestic economy and a challenging international environment

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China wants to shift from dependency on road freight to rail and sea transport. Photo: Xinhua

Published: 11:00pm, 12 May 2024

China is seeking to cut logistics costs to boost domestic consumption and offshore competitiveness as it confronts a series of economic headwinds.

On Saturday Premier Li Qiang told a meeting of the State Council, China’s cabinet, that the move would help increase the efficiency of the economy.

“There need to be more efforts to optimise freight transport, promote the digital, smart and green development of the logistics sector, and substantially lower logistics costs,” Li said, according to state broadcaster CCTV.

Beijing is seeking to boost trade-led growth to hedge against domestic challenges, including the persistent property slump and sluggish consumer spending.

The country has already made some progress this year. Customs data shows that in April exports rose by 1.5 per cent compared with a year earlier to reach US$292.5 billion, turning around a 7.5 per cent drop in March.

Last year shipments dropped by 4.6 per cent due to weak external demand, following seven years of export growth.