DHL Express: China's policy moves to aid growth

China's recent efforts to strengthen foreign trade through a raft of policy measures offer new opportunities for international logistics corporations like DHL Express to further grow their businesses in the country, according to a senior executive.

China has been opening up its market to the rest of the world to unleash the large potential of its mega-market and has put in place favorable policies to support foreign firms in expanding their operations in the country, said Wu Dongming, CEO of DHL Express China.

The State Council, China's Cabinet, unveiled in March an action plan comprising 24 specific pro-foreign investment measures. The plan included targeted measures to expand market access, enhance the appeal for foreign investment, foster a level-playing field, facilitate the flow of innovation factors as well as better align domestic rules with high-standard international economic and trade rules.

"The action plan comprising 24 specific pro-foreign investment measures unveiled by the State Council, for example, is one of the very supportive policies that aims at improving the environment for foreign investment and attracting more global capital," Wu said.

"China's resolve for further and wider openness benefits China and the world, as China is crucial to the world's economic growth prospects. We always welcome and support the openness because it drives global trade."

According to the action plan, China will reasonably shorten its negative list for foreign investment and launch pilot programs to relax foreign entry thresholds in scientific and technological innovation.

Wu said DHL Express is optimistic about China's economic development, which boasts the world's largest middle-income group and the world's largest logistics market.

As one of the most favorable investment destinations in the world, China's total trade in goods has ranked first globally for the past six consecutive years. It is also a powerhouse of technology and innovation, leading the world in energy consumption reduction, he said.

Since entering the Chinese market in 1980, the company has invested over 10 billion yuan ($1.38 billion) to build network facilities around China, providing thousands of jobs, while it vows to continue investing in business, operations and technology to keep growing in the country, one of the most important markets for DHL Express.

The massive market demand and growth opportunities in China, especially in sectors such as new energy, digital transformation, intelligent manufacturing and e-commerce, are prompting an increasing number of multinational companies to enhance their investments in trade in services-related businesses within the country, said Chu Xiangyin, a professor of supply chain management at the University of International Business and Economics in Beijing.

Wu said DHL Express will have invested more than 2 billion yuan in building, upgrading and expanding its gateways in Wuxi, Chengdu, Shenzhen, and other Chinese cities by 2025.

The logistics giant has also invested in lower-tier cities in China, including several service centers in cities like Jiujiang in Jiangxi province, Tai'an in Shandong province and Yinchuan in the Ningxia Hui autonomous region in recent years.

"The Shenzhen super gateway, in particular, will launch more cargo routes from the city to major destinations around the world after it becomes operational as planned in 2025, offering more efficiency and convenience to cross-border and intercontinental air transport for our customers in the southern parts of China," he said.

"We've seen that China has been taking a series of effective economic policies and structural reforms to drive higher-quality and further development. As a logistics company for the world, we continue to connect China with the world and the world with China in a sustainable way."