Recently, it is said from the 15th forum of Chinese logistic experts that the Program of Chinese Modern Logistics Development is going to be map out and to be carried out in the March or April this year.
The Program is mainly divided into five sections. It is about the situation and status quo of Chinese logistics development in the first section, and followed by the aim, guided idea and basic principles. The third section is mainly assignment and the important projects in the fourth part. The last part is about the measures of guarantee.
It is disclosed that there is about 8 main projects which are all possibly to be supported by the government. Once the Program carried out, it will promote further development of Chinese logistics as a guide of logistic investment.
Mr. Ding Junta, executive vice chairman of China Federation of Logistics & Purchasing, said, China planed to enact or edit part of Logistics Law to prevent foreign control from China's supply chain of some important industrials.
He said yesterday in the Fourth forum of International Competitiveness of China's Industry concluding in Shenzhen, outsourcing of manufacturing and commerce industry, integrative service of the third party logistics company will be the two main trend of logistics industry globalization. With the coming of supply chain management times, transnational logistics companies control the global industrial supply chain of logistics service through mergers and acquisitions. China's traditional logistics industry will face greater and greater impact from the Chinese strategic of multinational logistics enterprises.
Four difficulties logistics industry faces
It is introduced that in 2006 China's logistics industry growth rapidly, showing the specialty of continual drop of logistics total cost and GDP ratio, gradually raise of logistics proportion in service industry, further strengthening of the relation between logistics and economy, fast development of logistics increment service. However, compared with the developed countries, the development of logistics is still at an early stage and the gap reaches twenty to thirty years. The total cost of logistics and GDP ratio in 2006 was 18.3%, which is one times more than that in developed countries. The ratio of physical management fees is 2.5%, which is five times of America and Japan.
He said, there exist four problems: little change of China's logistics business mode "large and comprehensive" and "small and self-contained", low level of market, socialization and specialization, immature and nonstandard logistics market, lack of logistics talents.
Mr. Ding Junfa added that the global development of world logistics is a completely new social division; transnational logistics companies firmly control the global industrial supply chain of logistics service through mergers and acquisitions, especially China and India have been the strategic importance.
According to his introduction, transnational logistics companies enter China's logistics market through purchasing sea route, investment of logistics facilities, adhering the transfer of industries and transferring the logistics hub of Asian-pacific area to China. Their strategy in China will impact China's traditional logistics for a long time. The benefits are it can promote the transformation from traditional logistics to modern logistics, accelerate the connection with international, be good for the development of the third party logistics company, push China抯 logistics resource to market. While the abuses exist, China's logistics enterprises are rejected by the high threshold of high logistics service for foreign control of the manufacturing service supply chain, after the opening up of China's logistics industry, foreign investment in certain areas to enjoy MFN treatment, private capital is difficult to access, unequal competition forms, and it also increases the competition for logistics talent.
Avoid the control of high-end supply chain
"What we should do for the growth of China's logistics is to accelerate the distribution of some important industries supply chain, which prevent these important industries from monopolizing by foreign companies." Said Mr. Ding Junfa, China plans enacting or editing part of logistics law to solve the problems of foreign logistics companies entering China without any limit and enjoying MFN treatment, avoid private capital being shuffled out of the game, support the development of the third party enterprises, encourage main logistics companies entering international industry supply chain, encourage diversification of investment, establish the Logistics Development Fund and increase the intensity of the logistics industry financing.
He denoted at the same time, at the first half of 2008 the compendium of modern logistics development will be carried out hopefully. It is expected that in the near 5 to 10 years the competitiveness of China's logistics companies will be strengthened a lot.
From: China Securities Journal & Shenzhen Shipping Gazette