Delivering growth: What China’s logistics data reveal about its economy

By Han Xin, People’s Daily
China’s logistics sector is showing renewed vitality, with recent data highlighting its role in sustaining economic momentum.
According to the latest figures, the country’s e-commerce logistics index reached 112.3 points in August, marking six consecutive months of growth and reaching its highest level this year.
Meanwhile, China’s total social logistics value surpassed 360 trillion yuan ($50.46 trillion) in 2024, a historic high that reaffirms the country’s position as the world’s largest logistics market for the ninth consecutive year. That sustained expansion, even at such a scale, reflects underlying economic resilience.
Often referred to as the “nervous system” of the real economy, modern logistics serves as a critical link between production and consumption. The latest figures suggest a shift not just in scale, but in quality, highlighting an industry transitioning from rapid expansion to more efficient, value-driven growth. The trend points to deeper structural changes and continued resilience in the Chinese economy.
A look at consumption trends reveals significant shifts between online and offline activities.
From January to August this year, China’s online retail sales approached 10 trillion yuan, a year-on-year increase of 9.6 percent, outpacing overall retail sales growth. This upward trend, supported by policies promoting product trade-ins and surging consumer demand, is driving sustained expansion in e-commerce logistics. Every package ordered and delivered speaks to increasing consumer confidence and the growing depth of China’s digital economy.
Service consumption has continued to rise this year, along with spending on development-oriented and enjoyment-oriented products, signaling continued consumption upgrading. With strong policy support and the advantage of a vast domestic market, China is poised to unlock further potential in diversified and stratified consumer demand.
Beyond consumption, logistics activity also reveals the trajectory of industrial transformation and upgrading. Last year, logistics volumes in traditional sectors such as chemicals, cement and steel declined, while high-tech products such as integrated circuits, optoelectronic devices and smart robots maintained double-digit growth, emerging as new drivers of industrial logistics.
The divergence between decline and growth underscores China’s shift toward higher value-added industries. As the country’s industrial system moves further up the value chain, embracing advanced manufacturing and intelligent production, a more sophisticated supply structure is reinforcing the long-term stability and growth of the Chinese economy.
Today, China boasts a comprehensive transportation network exceeding 6 million kilometers, an expanding network of logistics hubs, and steady progress in developing international logistics corridors. These improvements are enabling faster, more efficient movement of goods across regions and sectors. Enhanced infrastructure, diversified logistics channels, and integrated transport systems are enabling smoother flows, strengthening the logistics sector’s role as a cornerstone of economic stability.
While physical infrastructure provides the foundation, regulatory reforms and market mechanisms serve as the connective tissue of the logistics system. Recent measures to improve the market-based allocation of production factors have eased bottlenecks in economic circulation. Efforts to curb disorderly price competition are helping to safeguard fair market conditions, while streamlined channels for selling export-oriented products in the domestic market are accelerating the integration of domestic and foreign trade. These reforms are reducing logistics costs, boosting industrial competitiveness, and improving the efficiency of national economic flows, reinforcing the steady momentum of China’s economy.
Looking ahead, China is well-positioned to build a more robust, responsive, and efficient modern logistics system that bridges supply and demand, links domestic and international markets, and balances security and efficiency. This logistics backbone will continue to support the smooth operation and sustainable growth of the Chinese economy.