China's logistics sector achieves 5.7 pct yearly growth in Jan-Oct period

China's logistics operation showed a positive trend of stabilization and recovery from January to October this year, according to the data released on Friday by the China Federation of Logistics and Purchasing.

During the period, the total volume of social logistics nationwide was 287.8 trillion yuan (around 39.8 trillion US dollars), a year-on-year increase of 5.7 percent.

In October, the total volume of social logistics also saw an increase of 5.7 percent year on year, the best growth rate since June, indicating that the recovery momentum of logistics operation has strengthened.

"From January to October, the development of logistics was relatively good and continued to recover. The logistics sector is a frontrunner in the entire national economy, so the continued recovery of logistics reflects the further strengthened recovery trend of China's economy," said Cai Jin, vice president of the China Federation of Logistics and Purchasing.

Specifically, the total logistics volume of industrial products maintained steady growth, with more than 80 percent of regions and industries achieving growth.

The demand for manufacturing logistics, represented by equipment manufacturing, remained stable. In October, the total logistics volume of the equipment manufacturing industry increased by 6.6 percent year on year.

The growth of import logistics was also stable, and the import logistics of bulk commodities such as iron ore and coal improved.

Driven by policies such as the trade-in of old consumer goods for new ones, the logistics demand of institutions and residents rebounded significantly. In October, the total retail logistics volume of goods related to offline retail trade logistics increased by five percent year on year. Logistics demand related to the retail sales of household appliances and audio-visual equipment, cultural and office supplies, and furniture products increased by 39.2 percent, 18 percent, and 7.4 percent, respectively, year on year.

"In October, the recovery momentum of logistics operation strengthened, and there has been a trend of stabilization and recovery in multiple fields, with a structural improvement. With the acceleration of production and the approaching of peak consumption season, various departments are stepping up efforts to promote the implementation of incremental policies, which will further release the potential of consumption and provide favorable support for the development of the logistics industry. The further enhancement of production activity and the acceleration of production, as well as the growth of demand, have driven the growth of logistics demand for bulk commodities in the entire import sector and consumer goods related products," said Liu Yuhang, director of the China Logistics Information Center.

In terms of consumer logistics, the release of consumption potential in multiple scenarios has accelerated the recovery of logistics demand of institutions and residents. From January to October, their total logistics volume increased by eight percent year on year. In October, both offline and online consumer demand grew on a monthly basis.

"The logistics industry's supporting role in the entire national economy has been continuously strengthened. It has improved production efficiency and expanded consumption upgrades. The logistics operations in China are showing an overall upward trend," said Jiang Xu, dean of the School of Logistics of Beijing Wuzi University.

China's logistics sector achieves 5.7 pct yearly growth in Jan-Oct period

Japanese experts said that the ruling coalition of the country will face considerable challenges and uncertainties in future political and economic governance as it loses majority in the lower house. 

Japan's Diet convened for an extraordinary session on Thursday. The focus will be on reviewing the supplementary budget for fiscal year 2024 and discussions on amending the Political Funds Control Act.

The session will be the first full-fledged debate since the governing coalition of the Liberal Democratic Party and Komeito Party lost their majority in last month's lower house election.

Shozaburo Sakai, former president of Chuo University, a leading Japanese university in Tokyo, said as a minority government, the ruling coalition will face great challenges in promoting political and economic reforms.

"The Ishiba administration, which is in power as a minority, now relies most on winning the support of public opinion. Because the administration has become a minority in the lower house, it may face a challenge of a no-confidence motion at any time. If a no-confidence motion is proposed [by the opposition party], the minority government might be overthrown at any time," he said. 

Sakai said that the current domestic prices in Japan has continued to rise, the cost of living for the people continues to rise, and raising the policy interest rate and curbing the depreciation of the yen are direct means to deal with rising prices. 

However, under the influence of the previous long-term negative interest rate policy, the survival of small and medium-sized enterprises in Japan depends on bank loans, and the interest rate hikes are fatal to these enterprises, according to Sakai. 

"The Ishiba administration needs to consider the cost of living of the people, so in order to curb price increases, it needs to guide the yen to appreciate steadily. However, if the yen is guided to appreciate, small and medium-sized enterprises will be in trouble and may even go bankrupt, which creates a difficult situation," he said. 

Japan's ruling coalition to face multiple governing challenges: expert