The logistics sector serves as the vital circulatory system of an economy, functioning as the connective tissue between production and consumption, as well as between domestic and international tradeIn line with the decisions made during the 2023 Central Economic Work Conference, the push towards reducing logistics costs across the nation was voicedAnd with the 2024 Central Economic Work Conference, there was a reaffirmation of the commitment to this initiative with the proposed "Special Action to Reduce Logistics Costs Across Society." These undertakings aim to enhance core competitiveness within various industries and boost operational efficiency across the economy.

Ultimately, the level of logistics cost in society is a direct indicator of the quality of economic development and overall competitive strengthBy working towards lowering logistics costs, the smooth movement of goods and services through different channels can be achieved, thus improving resource allocation efficiency, and facilitating seamless economic circulationAdditionally, it can break down barriers between industries, promote transformation and collaboration within sectors, and establish a robust industry chain supply systemThis strategic move will also enhance product competitiveness, allowing businesses to participate more effectively in global economic partnerships, thereby improving their standing within international supply chains.

It's essential to clarify that social logistics costs are distinct from direct logistics costsThey encompass all expense outlays related to logistics activities within a nation’s economyTypically, countries assess these costs by analyzing the ratio of total social logistics costs to gross domestic product (GDP). The primary determinants of this ratio are the economic structure and overall economic development levelTherefore, effectively reducing social logistics costs is not merely about slashing prices or squeezing profitsRather, it entails focusing on quality upgrades, enhancing efficiency, optimizing structures, leading with innovation, addressing inefficiencies, and refining regulations—ultimately creating space for lowering costs

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Recognizing this, reducing logistics costs should emerge as a fundamental commitment to advancing high-quality development within modern logistics, including unwavering support toward technological advancements and new business models.

The creation of a modern logistics system stands as a fundamental goal for reducing logistics costs effectivelyChina has acknowledged the significance of developing its logistics sector in recent years, with constant improvements observed in its infrastructureLogistics corridors, hubs, and last-mile delivery networks are being methodically upgraded; notable initiatives include the construction of coastal and border logistics corridors and the Western Land-Sea New Channel, crucial infrastructure projects that support the logistics frameworkCurrently, over 90% of rail freight services operate at key coastal ports and major ports along the Yangtze RiverTo date, there are 152 cities designated as national logistics hubs, with significant investments in logistics facilities and services including 229 national logistics hubs being established and 86 cold chain logistics bases, alongside 337,800 village-level multi-functional logistics service stations that offer versatile supportThe infusion of technologies such as big data and artificial intelligence is accelerating the modernization and green innovation in logistics, consistently driving down costsRecent statistics indicate that in 2024, the ratio of total social logistics costs to GDP in China stands at 14.1%, representing a decrease of 0.3 percentage points from the previous year and marking the lowest level since formal statistics began in 2006.

Establishing a modern logistics system is undeniably intricate; it demands an accurate grasp of developmental trends as well as alignment with the requirements of constructing modern logistics operational systemsThis encompasses the enhancement of logistics service systems and improving the commercial and trading circulation systems

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Such an approach will effectively lower social logistics costs while nurturing a high-quality evolution of modern logistics.

To achieve this, there are several strategic approachesFirst, there should be a reinforced emphasis on updating logistical infrastructure to forge a robust operational framework, aptly defined as ‘channels + hubs + networks.’ This entails leveraging the national comprehensive transportation network's planning to form significant domestic logistics pathways, including the establishment of 'four horizontal and five vertical' logistics corridors across the nationThere is also a need to adapt to high-quality initiatives such as the Belt and Road Initiative and to deepen international cooperation through the establishment of connected logistics corridors with neighboring countriesReinforcing the construction of national logistics hubs through strategic optimization of resources and functions will be crucialMoreover, it becomes imperative to enhance liquidity across logistical infrastructures and promote information sharing to support logistics parks, distribution centers, and specialized markets, thereby creating a coherent logistics hub network, facilitating both domestic and foreign exchanges fluidly.

Secondly, improving the modern logistics service framework from the standpoint of serving the real economy and ensuring seamless economic circulation is vitalThis involves hastening the digital transformation of logistics, upgrading smart logistics capabilities, and nurturing innovative service models tailored to meet the needs of the industryThe ultimate goal is to cultivate an efficient and intensive modern logistics service framework that links production with consumption, integrating modern logistics with agriculture, advanced manufacturing, and contemporary service sectors at higher levels of synergyA reliance on new infrastructure, such as data centers, is necessary to heighten support for efficient movement of economic elements, thereby promoting cross-regional resource integration and cohesive industrial value creation.

Thirdly, to better serve the needs of urban and rural residents, the modern commercial trading system must be refined

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