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Luna Sun

China’s logistics efficiency hit a new high in 2025, as expanding infrastructure investment and rapid adoption of new technologies supported productivity growth in the world’s second-largest economy.
The ratio of total social logistics costs to gross domestic product fell to 13.9 per cent in 2025 – the lowest level on record – down from 14.1 per cent in 2024, according to data released by the National Development and Reform Commission.
That meant 13.9 yuan (US$2.01) was spent on logistics for every 100 yuan of economic output, a crucial measure of supply-chain efficiency and overall productivity.
The trend highlights steady progress towards Beijing’s goal of transforming the world’s largest logistics market into a more efficient and strategic one. An action plan issued in November 2024 targets lowering the ratio to about 13.5 per cent by 2027.
As part of that goal, advanced technologies have begun to reshape the sector. Unstaffed warehouses, delivery drones and artificial intelligence-driven dispatch systems are gaining traction, with pilot projects and early deployments expanding rapidly.
Many of these applications remain in the trial or early adoption stage, suggesting potential for further growth. Industry-wide penetration and depth of intelligent operations lag behind those of leading global logistics companies, while some high-end technologies continue to depend on imported components.
Infrastructure also underpins China’s strengths. The country has been the world’s largest logistics market for nearly a decade, with total value reaching 368.2 trillion yuan (US$53.3 trillion) in 2025, up 5.1 per cent year on year in real terms. Parcel deliveries climbed to 216.5 billion, an 11.8 per cent increase.




It also boasts the world’s largest delivery network, driven by nearly 3,000 large logistics parks. Freight volumes on its high-speed railways, expressways and through its ports also rank among the highest globally.
Even so, China’s logistics cost-to-GDP ratio remains above that of most developed economies, which typically stand at about 8 to 9 per cent. In the United States, for instance, business logistics costs totalled US$2.6 trillion in 2024, equivalent to about 8.7 per cent of GDP, according to the State of Logistics Report by the Council of Supply Chain Management Professionals.
Beijing has stepped up efforts to restructure the sector, with reforms aimed at deepening marketisation and reducing costs, according to the China Federation of Logistics and Purchasing.
“The institutional environment has been improved in tandem with upgrades to infrastructure and the logistics standards system. From a macro policy perspective, multiple government departments have introduced supporting measures, while local authorities have tailored implementation plans to local conditions,” the federation said.
Regional market barriers have also been gradually dismantled, it added, while controls on transport and freight forwarding have been eased to support the freer flow and more efficient allocation of logistics resources nationwide.
The share of administrative and management costs also declined in 2025, the report noted, helping to improve the flow of goods and capital across the wider economy.


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Beijing brings per unit costs to lowest level on record – though outlays still remain well above levels in most developed economies


Beijing brings per unit costs to lowest level on record – though outlays still remain well above levels in most developed economies.


How AI, delivery drones helped China cut logistics costs to a new low

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Beijing brings per unit costs to lowest level on record – though outlays still remain well above levels in most developed economies

Beijing brings per unit costs to lowest level on record – though outlays still remain well above levels in most developed economies