China's social logistics hits $27.67t in first seven months of 2021, weather weakens expansion
China's social logistics reached $27.67 trillion in January to July, 2021. /CFP

China's social logistics reached $27.67 trillion in January to July, 2021. /CFP

The total value of China's social logistics reached 179.2 trillion yuan (about $27.67 trillion) in the first seven months of 2021, representing a year-on-year increase of 14 percent but a decline of 1.7 percentage points from the growth rate of the first half of the year, data from China Federation of Logistics & Purchasing (CFLP) revealed on Wednesday. 

In July, the logistics industry's prosperity was affected by seasonal factors, and the expansion was weaker than last month. Both logistics supply and demand slowed down by varying degrees.

"Despite the impact of high temperatures, rains, and local COVID-19 cases causing the entire logistics business activities to drop, the scale of logistics demand and logistics market are better than the pre-epidemic, which reflects China's current logistics operation still maintains a steady and positive growth trend," He Hui, head of China Logistics Information Center, told CMG. 

In the first seven months, the total revenue of the logistics industry was 6.8 trillion yuan, an increase of 20.8 percent year on year, bringing the average annual growth rate in the past two years to 9.1 percent.

From the perspective of the structure of social logistics, industrial product logistics has continued to recover steadily. Meanwhile, import logistics demand has slowed, and logistics demand related to people's livelihood has continued to stabilize and improve.

Although the growth rate of major industries' logistics slowed by varying degrees, that of the equipment manufacturing and the high-tech manufacturing industries has grown. The demand for electronics, new energy and shipping-related products continues to be strong, during the period, according to the CFLP.

The logistics of the high-tech manufacturing industry increased by 15.6 percent year on year, with a growth rate 9.2 percent faster than that of industrial logistics.

The recovery of the global economy has more demand from China's supply chain, said He, adding that it is also a periodical factor that has maintained rapid growth. 

"From a long-term perspective, as China is a large economy with a large base, the growth rate will gradually decline. The current [growth] level is higher than normal," he said.

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