China launches state-owned Logistics Group to “stabilise global supply chains”
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China has announced the establishment of a new state-owned China Logistics Group (CLG), which aims to strengthen its position in international supply chains by developing international trade links and freight services, as well as cross-border e-commerce. China says CLG will help stabilise global supply chains.
The new state-owned company, which will be an addition to the cargo freight market, currently covers 30 Chinese provinces, has a presence in five continents, and operates 3 million vehicles, according to the announcement on the Chinese state television.
China Logistics Group was formed through a merger of China Railway Materials, China National Materials Storage and Transportation Group, Huamao International Freight Limited Company Shenzhen Branch, China Logistics, and China National Packaging Corporation, reported Reuters.
The owners of CLG also include China Eastern Airlines, COSCO Shipping, and China Merchants Group.
As the state-owned Global Times writes, CLG will help to stabilise supply chains after the coronavirus crisis.
The move shows top decision-makers are shifting their attention from global transportation hardware ownership toward better management on global supply chains”, – said Li Hongchang, deputy director of the Chinese Transportation Economic Research Center.