China's logistics demand sees stable growth amid industrial expansion

China’s logistics demand maintained stable growth in the first half (H1) of this year, supported by resilient improvements in high-end industry and manufacturing, official data showed on Wednesday (29/7). The country’s total national social logistics value reached 181.1 trillion yuan (1 yuan = Rp2,672) in the January-June period, up 5.1 per cent year on year (yoy), surpassing gross domestic product (GDP) growth by 0.4 percentage points over the same period, according to data from the China Federation of Logistics and Purchasing. “The country’s social logistics structure has undergone significant changes, with demand for logistics services from high-end manufacturing, advanced equipment, and consumer-related sectors surpassing demand from traditional industries,” said Zhou Zhicheng, a spokesperson for the federation. Industrial goods logistics grew 5.4 per cent yoy in H1. As China accelerates the development of new quality productive forces, logistics demand from the high-tech manufacturing and digital product manufacturing sectors increased by 13.3 per cent and 12.3 per cent respectively, exceeding overall industrial goods logistics growth by 7.9 and 6.9 percentage points respectively. On the import side, changes in domestic demand and global commodity price fluctuations altered logistics demand. Imports of crude oil and steel fell by 11.4 per cent and 11.3 per cent respectively compared to a year earlier. In contrast, imports of semiconductor manufacturing equipment and integrated circuits rose by 20.4 per cent and 8.1 per cent, highlighting the resilience of logistics demand for semi-finished goods used in high-end manufacturing, according to the data.