The increasing demand for services accelerates the assimilation of Chinese logistics sector with the global logistics industry. Foreign investment and expansion to the Mainland market is a catalyst for the sector’s industrialization, Sohu News reported.
 
On the one hand, China’s position as a manufacturing hub is in need of an efficient logistics system. On the other hand, a well-established logistics sector can serve as an engine to complement the development of the manufacturing sector.
 
China is already in talks with East Asian countries to strengthen cooperation in constructing international channels in the form of railways, expressways and water transport ways. The promotion of CEPA and the establishment of a Zhujiang Delta economic cooperation body are also pavig the way for logistics sector to further industrialize.
 
Influence of foreign participation
The entrance of multinational corporations stimulates new logistics demands in the Mainland. Since multinational corporations want their China operations to be a part of a well-established global supply chain with efficient production, purchasing and logistics systems, this provides opportunities for the logistics sector.
 
Establishments of purchasing centres in China increase the demands for logistics services. While multinational corporations seek business

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