Abstract
As part of the terms of its World Trade Organization (WTO) entry, China agreed to open market sectors and services that, in the past, were protected from global competition. The opening of the distribution and logistics sector is expected to spur the modernization of the sector over the next 3–5 years starting from 2001. This article plans to discuss the overall situation of China’s distribution and logistics development especially focus on China’s WTO entry’s commitment; and point out the business risks for foreign companies. Finally, this article wants to suggest some strategic actions which foreign companies can adopt as the conclusion. Hopefully, this article may help foreign companies enter China’s logistics market and do business smoothly.
(Published by “Proceedings of 4th Academic Research Conference on Cross-Straits Industry Development and Operation Management”, May 2, 2005, pp. B3-1–B3-9).
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
“China’s FDI hit US$62 billion in 2004, ranked No.2 and was only less than the United States”, Oriental Morning Post, http://gb.chinabroadcast.cn/7212/2005/01/13/1166@421174.htm.
- 2.
Ho and Lim (2001).
- 3.
Australia the Pulse of Chinese Logistics (2002).
- 4.
Bolton and Wei (2003) at p.9.
- 5.
Ibid.
- 6.
Bolton and Wei (2003) at p. 9.
- 7.
Wei (2004).
- 8.
“China's 1st-quarter logistics value totals US$993b”, Xinhua, May 12, 2004, http://www.chinadaily.com.cn/english/doc/2004-05/12/content_330078.htm.
- 9.
World Trade Organization (2001).
- 10.
WTO Entry Unleashes Greater Opportunity and Competition in Logistics Sector (2002).
- 11.
China to Fully Liberalize Its Distribution System (2000).
- 12.
“Complete opening-up of retail industry to foreign investors ”Xinwen Morning Post, March 17, 2004, edited by CS Shanghai, cited from China Commercial Brief—March 19, 2004,Vol. 2 No. 154, issued by the U.S. Commercial Service—American Embassy, Beijing. http://www.mac.doc.gov/china/CommBriefArchive.html.
- 13.
See supra note 7.
- 14.
Third-party logistics (3PL or TPL) refers to logistics provided by a third party other than the service provider and end user. 3PL enterprises mainly provide clients with sea and air freight rail and road transport services.
- 15.
See supra note 8.
- 16.
Bolton (2004).
- 17.
Fourth-party logistics (4PL or FPL) provider acts as an integrator of functions not covered by 3PL. Due to the growing popularity of global supply chain management, the services provided by 3PL alone may not be comprehensive enough. In order to offer speedy and effective services, 3PL providers must collaborate with others, namely 4PL, in order to boost their own capabilities.
4PL has the following characteristics:
1. As an integrator, it controls the point-to-point supply chain operations with client companies through subcontractors.
2. It provides integrated solutions for the supply chain.
3. It organizes the integration and implementation of the supply chain solutions.
4. As a supply chain integrator, it exercises central management of its own resources, capabilities, and technologies and those of complementary service providers.
- 18.
See supra note 16.
- 19.
See supra note 4 at p.13.
- 20.
See supra note 4 at p.13.
- 21.
Rosen (1999).
- 22.
- 23.
Jimmy Ng, supra note 21 at p. 12.
- 24.
“CNNIC 15th Report: WWW Web Sites Number”, Jan 19, 2005, http://it.people.com.cn/GB/8219/43564/43565/3131007.html.
- 25.
A zone–port interaction area is a combination between bonded land and a nearby international port. A bonded logistics zone will usually be set up in a port area. The combination will benefit enterprises in the former bonded zone by offering better logistics services, helping solve the bottleneck affecting China's bonded zones. But what seems most attractive to firms should be an updated tax rebate mechanism . Rebates will be granted upon the entry of domestic goods into zone–port areas, rather than the current practice of providing refunds after those goods leave China. See Zhang Jin “Xiamen bonded zone targets free trade area”, China Daily, August 6, 2004, http://www.chinadaily.com.cn/english/doc/2004-08/06/content_363197.htm.
- 26.
Felix W.H. Chan, supra note 21 at p.63.
- 27.
References
Australia the Pulse of Chinese Logistics. 2002. Issued by Austrade (Australian Trade Commission),October 15, http://www.pulse.com.au/news_detail.asp?NewsID=109&Source=News
Bolton, Jamie M. 2004. Supply chain management in China, July 2004. http://www.accenture.com/xd/xd.asp?it=enweb&xd=industries%5Ccommunications%5Caccess%5Csc29.xml#top
Bolton, Jamie M., and Yan, Wei. 2003. Distribution and logistics in today’s Chin. China Business Review: 8–17.
Chan, Felix W.H. 2002. The dynamic legal landscape for logistics management in China. Asia Business Law Review 37: 61–67.
China to Fully Liberalize Its Distribution System. 2000. Business alert—China, Issue 06, June 15, http://www.tdctrade.com/alert/cba-e0006b.htm
CNNIC 15th Statistical Survey Report on the Internet Development in China, published on January 15, 2005, http://www.cnnic.net.cn/download/2005/2005012701.pdf
He, Mingke. 2004. Opportunities for the development of China’s purchasing. Business Briefing: Global Purchasing & Supply Chain Strategies, pp. 8–17.
Ho, H., and Lim, C. 2001. China logistics: spot the early bird. Morgan Stanley, pp. 20–21.
Loo, David. 2002. China’s logistics industry presents a golden opportunity. Feb 28. http://www.tdctrade.com/imn/02022803/markettrends17.htm
Ng, Jimmy. 2004. Barriers to e-commerce logistics in China [Legal Aspects]. UNEAC Asia Papers No.7, pp. 1–18.
Rosen, D. 1999. Hype versus hope for e-commerce in China. China Business Review 26(4): 38–42.
Wei, Tan. 2004. Moving the goods. http://www.bjreview.com.cn/200429/Business-200429(C).htm
World Trade Organization. 2001. Trading into the future: WTO The World Trade Organization, 2nd Ed.
WTO Entry Unleashes Greater Opportunity and Competition in Logistics Sector. 2002. Business alert—China, Issue 08, August 15, http://www.tdctrade.com/alert/cba-e0208sp.htm
Zhang, Jian Wei. 2001. Logistics in China. presented at WOF 2001, DBMJ, pp. 31–34.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2015 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Guo, Y., Zhang, C. (2015). An Overview of China’s Modern Logistics Development and Some Strategic Actions. In: Guo, Y. (eds) Research on Selected China's Legal Issues of E-Business. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-44542-6_6
Download citation
DOI: https://doi.org/10.1007/978-3-662-44542-6_6
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-662-44541-9
Online ISBN: 978-3-662-44542-6
eBook Packages: Humanities, Social Sciences and LawLaw and Criminology (R0)