China's Logistics Industry Shows Resilient Growth: A Look at the Numbers And Implications For the UAE.

Blog October 09, 2023 Hits: 648

China's logistics industry is showing signs of robust recovery, despite the challenges posed by the country's recent stringent Zero-COVID policy. A recent report by the China Federation of Logistics and Purchasing reveals promising growth figures that indicate a resilient and adaptable sector. But how is this impactful for the Middle East? Let’s see!

A Steady Climb

According to the industry report, the value of social logistics in China increased by 5.2% in August. This growth is not isolated; in the first eight months of the year, social logistics rose by 4.8% year on year to a staggering 216.4 trillion yuan (approximately 30 trillion U.S. dollars). Interestingly, this growth rate is 0.1 percentage point higher than that of the first seven months, suggesting a gradual but steady recovery. Adding to this, the total throughput for foreign trade at ports across China stood at 3.34 billion tonnes, up 9.7% from a year ago and 16.9% higher than the same period in pre-pandemic 2019. These figures suggest a gradual but steady recovery.

Sectoral Breakdown

The report provides a detailed breakdown of the logistics sector. Logistics for industrial products saw a year-on-year increase of 4.5% in August. Even more striking is the logistics for imported goods, which soared by 18.4%. In addition, about 10.32 million tonnes of international cargo and mail were sent from China by air, up 4.9% compared to the same period in 2022. Also, 1.26 million twenty-foot equivalent unit containers of goods were transported via 86 freight train routes linking Chinese cities with 217 European counterparts, marking a 23% increase from a year earlier. These figures indicate not just a domestic recovery but also a resurgence in international trade activities.

Revenue and Projections

The total revenue of the logistics industry rose by 4.7% year on year to 8.7 trillion yuan in the first eight months. While the China Federation of Logistics and Purchasing notes that the current recovery is not as strong as desired, it expects the sector to see steady improvement in the fourth quarter as demand continues to rise. The freight volume at major trade ports, such as Horgos and Suifenhe, surged by 89.1% year on year last month, indicating stronger goods-handling capacity.

The Impact of Zero-COVID Policy

China's Zero-COVID policy has been a double-edged sword for the logistics industry. While it has helped in controlling the spread of the virus, it has also posed challenges for logistics operations, affecting container prices from China and China's major ports congestion. The consequences of the Zero-COVID policy also included the emergence of India as a global logistical hub with the potential to replace China after decreasing many Chinese exports to major trade partners. However, the recent growth figures suggest that the industry is adapting effectively to the new normal. China's international delivery networks have also improved, with an accelerated global push from Chinese courier companies. This further strengthens the logistics sector despite the Zero-COVID policy consequences.

Implications For the UAE Trade Relations With China

As China continues to navigate the complexities of a post-pandemic world, its logistics industry serves as a testament to the country's resilience and adaptability.The resurgence in China's logistics sector also holds significant implications for its international partnerships, particularly with the United Arab Emirates and the broader Middle East.

The recent growth in China's international trade rates could pave the way for strengthened trade relations and logistical collaborations between China and the Middle East, offering new avenues for economic cooperation and mutual growth.

Also, given the stable China-Europe freight train services and the stronger goods-handling capacity at major land ports, this could be an opportune moment for traders and operators in the United Arab Emirates and other GCC countries to further deepen trade relations with China. Particularly, with the already signed Free Trade Agreement (FTA) between China and the GCC.

At Vervo Middle East, we are looking forward to the optimal recovery of China's logistics industry and the increased collaboration potentials with the Middle East! Sourcing goods from China to the UAE is now no longer as restricted as it was earlier this year.

We organize end-to-end logistical solutions in both regions and offer container shipping by air, sea, and multimodal from China to the UAE.

If you are looking for an authorized and reliable logistical partner in your UAE-China shipping, send us your cargo details at This email address is being protected from spambots. You need JavaScript enabled to view it. to get a personalized free logistical consultation on moving your cargo from China to the Middle East.