China to reduce retailers' commercial logistics cost

A man unloads parcels from a vehicle of a ZTO Express delivery in Beijing, October 27, 2016.[Photo/Agencies]

BEIJING - China will improve its logistics network to reduce costs for wholesalers and retailers.

The government will reduce the ratio of the retail and wholesale sectors' overall logistics costs on total GDP to 7 percent by 2020, according to a plan released by the Ministry of Commerce and other ministries.

High logistics costs hold back enterprises' growth. The ratio of China's total logistics spending on total GDP stood at 14.5 percent in the first three quarters of 2016, much higher than the average 8-to-9 percent level in developed economies.

China will expand its commercial logistics network and improve efficiency through IT application.

The government will also establish several national and regional commercial logistics hubs and invest more in infrastructure development.