Report | Is China the “Great Wall of Opportunity” for our logistics sector?
China is a country in transition. The world’s most populous nation is maturing from an export-driven developing economy to a consumer-driven developed economy. China’s East coast metropolises have become some of the most modern and home to some of the most affluent consumers in the world while growth in the hinterland has taken off. As a result, the logistics landscape has shifted for China domestically and internationally. There is new balance between the country’s desire to maintain a leadership position in global manufacturing and the demands of an increasingly influential urbanized population. Consumers, newly empowered by rising wages and a strengthening RMB, are buying more food, fashion and other goods from abroad. But China lacks the capital and the know-how to transport these goods efficiently and effectively. It is this deficiency that presents enormous opportunities for U.S. firms who do know how to develop or operate state-of-the-art logistics operations.
Navigating the increase in demand for modern logistics product and a maturing Chinese leasing and development market requires proper strategic insight. Complex trade-offs and hurdles permeate decisions on supply chains and transportation, site-selection, land acquisition and lease negotiations.
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