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Foreign participation is good for the development of China's logistics sector

Foreign participation is good for the development...

KPMG Industry Updates - Issue 2, March 2013  

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KPMG Industry Updates

China's current economic transformation requires an increase in domestic consumption, and creates huge demand for logistics. However, China's local logistics industry is underdeveloped and not ready to meet the challenges. Global companies have penetrated well into segments such as auto logistics, cold-chain logistics and port logistics, where they can make full use of their advantages of funds, technology, management experience and an overseas network. On the other hand, global players need to make improvements in the areas relating to government relationships, cost structures and domestic networks to further increase their market share. Global companies may bring competitive pressure to many local companies, but they also bring needed funds, technology, infrastructure, talent and experience. And their presence is beneficial to the development of the industry in the long run.  

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