Vice-Premier Wu Yi said Friday that China expects to build a modern logistics industry on an initial stage by 2010. She called for recognizing the importance of logistics for a socialist market economy and making efforts in developing a modern logistics industry.

Wu made the remarks at a national conference on logistics business held here April 14-15. It was the first national logistics meeting in the country since China launched its reform and opening drive in the late 1970s.

"Over the past decades of reforms, China has witnessed profound changes in the logistics sector as market mechanism has taken shape and played its due role," said Wu, who is member of the Political Bureau of the Communist Party of China (CPC) Central Committee.

"You can know nothing about a socialist market economy if you don't know about modern logistics," the official said.

She called for fighting localism and monopolism of different industries, making full use of technology and management of modern logistics, quickening the pace of developing chain stores, logistic distribution, and e-business, making efforts in developing rural markets and community-based businesses in cities, increasing supervision on market movements and setting up and improving mechanisms to prevent accidents and market fluctuations.

Wu denied that China has opened up its commercial sector to foreign investors excessively. According to her, foreign investment in China's commercial sector accounts less than 0.8 percent of total overseas investment, while the sales of foreign- funded commercial businesses make up less than 3 percent of the total.

She urged localities to be cautious about building large malls.