China moots sophisticated distribution

China is speeding up efforts to build a modern distribution system during the 14th Five-Year Plan (2021-25) period as it is key to the implementation of the new dual-circulation development pattern and bolstering high-quality development, China's top economic regulator said on Monday.

By 2025, the distribution of commodities and resource elements will be smoother, trade and logistics facilities will be improved, and the domestic and international distribution networks and service systems will become more complete, according to a plan released by the National Development and Reform Commission on Monday.

The plan said a modern distribution system that is safe, reliable and highly efficient with a global reach, will be fully established by 2035.

China will nurture high-quality and innovative logistics enterprises with global competitiveness, accelerate the digital and green transformation in building a modern logistics system, and expand the international cooperation in the logistics field, Zhang Guohua, deputy head of the economic and trade department at the NDRC, said at a news conference on Monday.

The country will strengthen support for transportation, financial services and credit services within the distribution ecosystem, Zhang said, adding that more efforts will be made to build modern logistics infrastructure networks, foster new businesses and models, and enhance high-speed rail and international airfreight transport capacity.

The proposed modern distribution system will be based on cutting-edge technologies, advanced scientific theories and extensive logistics practices, all of which seek to integrate the processes and factors related to logistics and supply chains, said Xie Xiaowen, a researcher with the China Society of Logistics.

Xie said logistics is a basic, strategic and leading industry that supports national economic growth. Accelerating the development of a modern distribution system is conducive to boosting the transformation and upgrade of China's traditional logistics sector and promoting high-quality development, he said.

"Building a modern distribution system will provide strong support for the country's new development paradigm, in which the domestic market is the mainstay while the domestic and foreign markets reinforce each other, and ensure the stable development of China's industrial and supply chains amid the current complex international situation," said Yang Daqing, a logistics expert.

Yang also said improving the facilities and service capabilities of the modern distribution system will help reduce costs of enterprises and enhance their core competitiveness, as well as unleash the huge potential in the domestic consumption market.

JD Logistics, the logistics unit of Chinese e-commerce giant JD, has already ramped up efforts to adopt innovative automation technologies that range from automated sorting to unmanned warehousing and robots to enhance its logistics capacity and capability.