China's logistics sector showed robust demand and steady operation, with the total business volume index of most industries in the expansion range, according to the logistics prosperity index for November released by the China Federation of Logistics and Purchasing (CFLP) on Tuesday.
The logistics prosperity index was 52.8 percent in November, up 0.2 percentage points from the previous month.
The logistics demand remained strong, driving the rise in the business volume index. Particularly, the logistics activity in the central region outpaced that of other regions in the country, with a total business volume index reaching 53.7 percent, surpassing the national level by 0.9 percentage points.
Since the start of the fourth quarter, the steady release of demands for industrial upgrading and renovation and consumption potential has led to increased logistics demands in areas such as communications equipment, electrical machinery, furniture and home appliances, agricultural and sideline products, and new energy vehicle manufacturing.
Meanwhile, there has been a notable seasonal rebound in energy resources and raw materials demands, propelling most industries to sustain an expanding trend in the total business volume index. Among them, the railway transportation, air transportation, and express delivery services have seen their total business volume indexes reach the high prosperity levels at 55.8 percent, 56.2 percent, and 70.6 percent, respectively.
In November, the fixed asset investment completion index in the logistics sector remained in the expansion range, surpassing 51 percent. Enterprise surveys indicate that the growth rate of infrastructure investment is generally stable, with a notable demand for digital and platform-based investments.
From the recent trends, the business activity expectation index has consistently stayed in the high prosperity zone, exceeding 57 percent for three consecutive months.
"The continuous rise in the logistics prosperity index indicates a notable growth in the demand for logistics within our country's economic performance. The further heightened activity across various aspects of logistics also indicates that logistics is offering robust support for the recovery and growth of our national economy," said Cai Jin, vice president of the CFLP.
China's logistics sector shows robust demand, steady operation in November
Officials and business leaders from both China and the United States gathered in Berkeley, California on Friday to discuss the future of trade and investment between China and the San Francisco Bay Area, with many hoping to overcome the recent strain brought by the Trump administration's tariffs.
The China Council for the Promotion of International Trade hosted a business breakfast exchange meeting on Friday morning, with the council's chairman Ren Hongbin sending out a clear message of the vast economic potential which is there to be tapped into.
"The Chinese economy is very much innovation driven. And the strategic emerging industries, such as new energy, new materials, low carbon, aerospace, bio-pharmacy and the low-altitude economy, will generate a trillion-yuan level or even larger markets. So, I think that will provide enormous opportunities and room for China and U.S. companies to cooperate," said Ren.
He further stressed the China International Supply Chain Expo in Beijing as an example of an event where San Francisco Bay Area companies like NVIDIA and Apple were active participants and direct beneficiaries.
Meanwhile, Chinese Consul General in San Francisco Zhang Jianmin said that against the backdrop of a global economic slowdown, greater cooperation in the innovation sector is now more important than ever.
"The [San Francisco] Bay Area is home to many of the world's top tech companies and offers a sound innovation ecosystem. China has a super big market, rich application scenarios and a complete industrial supporting system. There exists tremendous potential for both sides to have more mutually beneficial cooperation by tapping into their complementary strengths," said Zhang.
Attendees did voice concerns over how the Trump administration's tariffs are impacting business.
With China accounting for nearly 30 percent of the Port of Oakland's total trade volume, the port's executive director Kristi McKenney stressed the need for greater stability and certainty.
"The tariffs in many cases were never actually implemented or were changed before they were implemented. So those linkages are a bit more challenging. I think the bigger issue will be certainty in the economy. And if there's lack of certainty, if we see economic difficulty, then you're going to see job losses," said McKenney.
Oakland's Mayor Barbara Lee said that it is very much business as usual, despite the recent difficulties.
"While we understand the challenges of tariffs, the exports and imports are still continuing, and our port is still a large containerized port doing business with China. And we're going to strengthen that relationship. We may have our differences on issues, on policies, but we here in Oakland understand that we're a global city and we believe the trade brings friendships, brings understanding, and also brings economic benefits to both countries," she said.
Chinese, US officials, business leaders meet in California to deepen mutual understanding
