Proving the Business Case for the Internet of Things

China to set up pilot cities to develop logistics technology

Steve Rogerson
October 7, 2015
China's top economic planner has decided to set up several pilot cities to develop modern logistics, according to the Chinese government’s news agency Xinhua.
Against the backdrop of the government’s Internet Plus national plan, urban cities could play a key role in developing modern logistics, which could help support industrial upgrading, according to the National Development & Reform Commission (NDRC).
The Internet Plus action plan was unveiled by the State Council in July to mould information technology and traditional sectors into a cohesive, efficient force, and help cultivate new engines for economic growth and upgrade economic structure.
The plan identified areas that can benefit from Internet Plus, including logistics, services and e-commerce.
By the end of June 2015, China had 668 million internet users, 48.8 per cent of the population. Total e-commerce transaction volume in 2014 surged 59.4 per cent to ¥16.39tn, nearing its goal of ¥18tn by 2015.
Pilot cities could help increase the serving abilities of the modern logistics industry, enhance resources optimisation, and break barriers for the development of logistics, said an official with the NDRC.
Sound development of the logistics industry is meaningful to a good investment and consumption environment, as well as a steady and sustainable economic growth, the official said.
China aims to build a modern logistics service system by 2020, with annual growth of value added output of around eight per cent, accounting for around 7.5 per cent of the country's GDP, according to a statement by the NDRC earlier in August.
Data from China Federation of Logistics & Purchasing showed goods worth ¥104.7tn were transported in the first half of the year. Between January and June, the gross revenue of the logistics industry hit ¥3.6tn, up 5.4 per cent over the same period last year.