Ministry of Commerce of the People's Republic of China informed that the Chinese domestic logistics companies should prepare for increasing competition and challenges from foreign rivals. This statement stated at the 2nd Logistics Industry Development Annual Conference.
As China is completely opening its logistics marketplace to overseas firms this year in line with its commitments to the World Trade Organization (WTO), some foreign investors are expected to conduct more acquisitions in the sector, said Wu Jiahuang, a researcher with China Institute of the WTO.
He said foreign-invested companies would purchase some local companies to take advantage of their local network or infrastructures.
"That would be a crucial time for domestic companies, in particular the small and medium sized private ones."
Compared with their foreign rivals, many Chinese logistics companies are of high cost and low efficiency.
"It (foreign companies' acquisition) will not happen overnight but it is the trend in the logistics industry," he said.
China Logistics Association, the independent industrial association, is striving to help develop domestic logistics companies.
For example, it organized the recommendation of 100 outstanding logistics enterprises, expecting to introduce those with good performance to customers, both at home and abroad.
"We expect it will help build domestic logistics brands," said Xu Shouzhen, the secretary general with the association.
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