China needs a more efficient logistics system to bring down the logistics costs and deliver competitive edge to enterprises. That is the consensus among the speakers from both the government and the industry at China International Service Industries Convention and Expo. Policy-makers from government departments unveiled their plans to turn the vision into reality. And industrial insiders from US and Europe put forward their suggestions at the meeting.

Now China's logistics costs 21.4 percent of its GDP. That 's more than twice as much as that in US and Europe. A speech at the conference by Ma Liqiang, an official form State Development and Reform Commission, made public an array of measures to be adopted by the government to improve the situation.

All of the measures under consideration are about how to streamline the red tapes, slash charges and encourage competition for logistics sector in the country.

Logistics businesses will be subject to one uniform standardized registration system, administrative regime and taxation package. Fees collection stations along roads will be under scrutiny. Various barriers as a by-product of local protectionism will be removed.

The government is also well aware of how important it is to introduce competition so that a fair, orderly modern logistics system can be there. China will its logistics industry to foreign investors in line with its WTO commitment. Foreign logistics giants are welcome to make presence in China and participate into the construction of logistics infrastructure which is lags behind the demand here.

Optimizing distribution vehicles management in urban areas is also on the agenda. Ma also mentioned about simpler declaration procedures at the customs. But what the customs are doing will be much more than that.

A presentation by Gongzheng, Deputy Director-general of the Customs General Administration, shows a three-tiered system being built on which a more efficient logistics system is based for imports and exports.

On the top of the system is the interaction between ports and bonded zones. Under the approval of the State Council, this arrangement enjoys favorable policies and will make the zones free-trade areas.

Logistics centers for these bonded zones stand in the middle of the three-tiered structure. And warehouses for exports and imports serve as the base. Functions of these warehouses are expected to be extended.

Besides the physical flow of goods, an efficient modern logistics system will not be possible without easy payment settlement. Li Dongrong, the State Administration of Foreign Exchange (SAFE) told the audience at the meeting that his institution is considering ways to improve the management of foreign exchanges so that multinationals, enterprises in business of processing and special trade, people on business trips to foreign countries and companies to invest overseas will have easy and legal access to foreign change when they need it.

Robert Vastine, President of Coalition Service Industries from US was also present at the meeting and expressed his opinion on China's logistics development. He focused on two things: liberalization and transparency.

He calls for same treatment to domestic and foreign logistics companies. He proposed that licensing conditions and criterions be made public to all applicants. And applicants should be able to supplement documents and appeal if their applications are refused.

China has made much progress in logistics, according to Ma. It has improved the capacity of its infrastructure. More than 20 provinces and 30 major cities around the country have worked out and are implementing plans specially designed for modern logistics industry. Enterprises in this sector are experiencing rapid development. Demands for logistics service diversifies. One-stop services are in dire need instead of warehousing.

Standardization process goes well. Two forms of national standards of the logistics, one for the industrial standard system and the other for the information management, are under preparation.

By People's Daily Online