China’s Logistics Sector Shows Resilience Amidst Shifting Economic Sands

China’s logistics sector has shown remarkable stability, although growth is slightly slowing. This sector is adapting to shifting economic conditions and emerging trends, signaling a robust yet evolving economic landscape.

Overall Stability Masks Structural Shifts

Between January and May 2025, the total volume of social logistics in China reached 138.7 trillion yuan, representing a 5.3% year-on-year increase. While this growth is slightly less than the previous period, it reveals a solid foundation, lessening the impact of external factors on supply chains.

Industrial goods logistics saw a 5.6% year-on-year rise from January to May. This sector displayed steady expansion, supported by industrial upgrades and policy measures. The equipment manufacturing sector and industries like automobile manufacturing experienced strong growth.

“Driven by the dual driving force of industrial upgrading and policy efforts, logistics demand in most industries remained resilient this month.”

—China Federation of Logistics and Procurement

Consumer-related logistics experienced a surge, with a 6.4% year-on-year increase in the total volume of units and residents’ goods. This increase underscores the influence of consumer policies and the holiday economy.

Import logistics, however, faced challenges, with a 4.1% year-on-year decrease. This decline is partly due to the global trade climate. Despite these setbacks, the shift in import logistics, from traditional commodities to high-value-added industrial products, shows a shift.

Supply Side Expansion and Price Dynamics

From January to May, the total revenue in the logistics industry reached 5.6 trillion yuan, reflecting a 4.2% year-on-year growth. Despite a slight slowdown in growth, the market’s scale expanded, with strong performance in many sub-sectors, demonstrating a dynamic logistics supply.

Service prices in the logistics sector generally stabilized in May. For example, the highway logistics freight index saw a slight increase, while the maritime market experienced balanced supply and demand. However, the express delivery market saw price competition.

According to the National Bureau of Statistics, China’s manufacturing PMI in May was 49.5%, slightly below the 50-point mark that separates expansion from contraction, yet still indicates an economic resilience (China’s NBS).

Looking Ahead

Despite some existing pressures, the logistics sector’s future appears promising, with anticipated growth in equipment manufacturing and consumer-related logistics. Innovation in logistics models and enhanced supply chain support are expected to further increase the efficiency of economic operations.