A report recently released by market research firm research and markets pointed out that although China's logistics market is still small by American standards, it has been growing rapidly in recent years. It is expected that Beijing will become a major freight and logistics base in the Asia Pacific region

Since 2002, China's third party logistics (3PL) business has grown rapidly, and many state-owned logistics enterprises are engaged in this business. In the past three years, 70% of logistics service providers have achieved an annual growth rate of 30%. From 2002 to 2005, the annual growth rate of China's 3PL market may reach 25%

China's logistics market has huge development space. In 2002, China's logistics related expenditure was US $23 billion (190 billion yuan). In contrast, the United States spent $936 billion on Logistics in 2003. In addition, there is room for improvement in China's logistics industry. Logistics costs in China account for about 20% of gross domestic product (GDP) (compared with 8.5% in the United States in 2003)

Research and markets also pointed out that since China's accession to the World Trade Organization (WTO), foreign logistics suppliers have entered China one after another. Two thirds of the world's top 10 retailers now operate in China and have established procurement centers in China, which has driven the demand for relevant logistics services

It is expected that China will formulate a series of new regulations and policies to eliminate industrial monopoly, excessive action intervention and local protectionism

Research and markets said that China needs to implement industrial standards and rules to improve the efficiency of logistics companies, but this process may take several years