China’s logistic activity index in August reaches 52.2%
Tashkent, Uzbekistan (UzDaily.com) -- Against the background of the stabilization of the epidemiological situation and the improvement of economic indicators in China, the index of the country’s logistics activity in August 2020 reached 52.2%, showing growth for the third month in a row.
According to the China Federation of Logistics and Purchasing, the total volume of logistics in the period from January to August this year grew by 1.2% year on year (to US$25.7 billion).
Experts attribute the positive dynamics in this sector to the following factors.
1) State support for the logistics sector. Within the framework of state support for 2020-2025. Beijing is creating modern logistics systems with increased carrying capacity. In particular, an international aviation logistics center is being built in Zhejiang province. By 2021, the center’s annual capacity is expected to exceed 2.4 million tons, and the total investment will be US$970 million.
2) Growth in the volume of exports of goods. According to the State Statistical Office of the PRC, in the second half of the year, the country’s exports grew by 9.5% (US$235.2 billion) compared to 2019. China was one of the first to restore production and supply chains of goods, while exporters in many other countries continue to face restrictive measures.
Notably, there has been an increase in China’s e-commerce exports. E-commerce exports are projected to exceed US$200 billion by 2022, up from US$100.2 billion in 2017.
3) Increased investment in the transport sector. From January to August of this year the volume of investments in the transport sector increased by 10.5% (US$308 billion). Only for August of this year the transport sector was invested 31 billion dollars, which is 17% higher than the same indicator in 2019.
In general, according to experts, as the quarantine in other countries is lifted, the growth of e-commerce and the increase in domestic consumption in China, the index of China’s logistics activity will continue to grow. With this in mind, the Chinese authorities will continue to invest in the transport sector to ensure the smooth flow of passenger and freight traffic.