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TEXT General Introduction to Logistics
Pre-reading questions
1.What are the major challenges do you think facing Chinese logistic industry?
In recent years, China's logistics market is opening up to the
outside world. Obviously, the state-owned, private-owned and foreign-funded enterprises are surviving and thriving in the competitive markets. According to the commitments of Chinese Government when entering WTO, China would open up the market of logistics industry since December 11, 2005. The year of 2006 is the first year of China's 11th Five-Year Plan, and is also the first year when logistics is opened up completely.
2.Why do you think these challenges exist?
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During the 10th Five-Year Plan period, China's logistics industry experienced quick growth. According to the statistics of National Development and Reform Commission, National Bureau of Statistics of China and China Logistics and Purchasing Association, in the 10th Five-Year Plan period, the total amount of social logistics reached RMB158.7 trillion, increasing 1.4 times compared with that of the 9th Five-Year Plan period, with an average annual growth of 23%, which is much higher than the GDP growth rate of 9.5%. The ratio of the total amount of social logistics against GDP dropped from 19.4% in 2000 to 18.6% in 2005. In 2005, the amount of China's logistics exceeded RMB 1.2 trillion, with an annual increase of 12.7%, took 16.6% of the added values of servicing industry.
Furthermore, the economy has to go through a major restructuring which will be needed to transform its many stateowned enterprises into private sector. One problem for the country is that increased economic activity has led to rising labor costs especially in key regions of manufacturing and logistics. This will increase pressure on inefficient public sector companies and eventually lead to higher levels of unemployment. This will be increased by foreign competitors entering the market in line with China's WTO commitments.
商务英语阅读（下册）（第二版） unit 6 中国物流业发展所面临的挑战 和机遇
Teaching Objectives
❖ 了解中国物流业发展所面临的挑战和机遇 ❖ 理解机遇和挑战的来源 ❖ 了解中国物流业未来发展的方向
Teaching Emphases
❖ Economy imbalance ❖ Domestic trade barrier ❖ Unsound cture ❖ Lack of qualified operators
Without doubt, China's logistics industry is having a period of fast growth with the economic development and the increased acceptance of outsourcing by Chinese manufacturers and retailers. However, there are also a number of challenges faced by Chinese logistic companies. These include weak transport, information and communications infrastructure outside economic zones; a culture of regulation and bureaucracy; fundamental problems of energy supply; high transport and logistics costs; a poorly educated and badly trained work force as well as high regional imbalances of trade both domestically and internationally.