China State Council pushes modern circulation system to cut logistics costs

China's State Council has called for faster development of a modern distribution and logistics system, focusing on infrastructure upgrades, multimodal transport and lower logistics costs.

The meeting reviewed progress in building China's modern circulation system and urged authorities to address weaknesses in logistics infrastructure while improving governance, standards and new business models.

Official data showed China had established 229 national logistics hubs by the end of 2025, including 181 operational hubs. The ratio of total logistics costs to GDP fell to 13.9% in 2025, the first time it has dropped below 14%.

The government has recently introduced measures to strengthen freight transport networks, including a three-year program supporting around 30 logistics hub cities and a 2026-2030 action plan to improve multimodal transport. These policies aim to improve efficiency across supply chains and transportation networks.

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