China Expands Logistics Network to Boost Real Economy
China is undertaking a massive expansion and quality upgrade of its national logistics network, positioning it as a core pillar of national infrastructure alongside power grids, computing networks, and next-generation communications. The initiative, part of the broader “Six Networks” strategy announced by the National Development and Reform Commission (NDRC) in May 2026, aims to transform logistics from a cost center into a driver of economic growth, injecting new momentum into the real economy through improved supply chain efficiency, digitalization, and green transformation.
A National Infrastructure Priority
According to Xinhua News, China has planned 229 national logistics hubs across 152 hub-bearing cities as of 2025, with 181 already operational. Additionally, 105 national cold chain logistics bases have been established, and the “6 Axes, 7 Corridors, 8 Channels” comprehensive transport framework is over 90% complete. Some hub cargo throughput is growing at over 10% annually, and more than 90% of China-Europe Railway Express trains are consolidated and distributed via national logistics hubs.
“The main framework of China’s modern logistics infrastructure has been essentially completed,” said Zhou Zhicheng, Director of the Research Office at the China Federation of Logistics & Purchasing (CFLP). He noted that the logistics network has now been elevated to the status of “national-level new infrastructure,” alongside new power grids, computing networks, and next-generation communications.
The Six Networks Strategy
On May 22, 2026, the NDRC announced the “Six Networks” strategy, encompassing water networks, new power grids, computing networks, next-generation communications, urban underground pipelines, and logistics networks. NDRC Spokesperson Li Chao stated that the commission would accelerate the release of relevant plans and implementation schemes, clarifying investment priorities in each area and breaking down targets by year, as reported by China.com.cn.
Major Corporate Investments
The policy push has triggered a wave of corporate investment in logistics infrastructure. In May 2026 alone, several major logistics companies announced significant projects:
SF Express is investing 1.5 billion yuan in a Central China Multimodal International Hub in Zhengzhou, Henan Province. The 490-mu (~33 hectares) facility will feature smart warehousing, a multimodal center, and a drone network, with projected annual revenue of 6 billion yuan, according to People’s Daily.
Wuhan Aviation Group and JD.com have broken ground on a 3-billion-yuan Smart Logistics Park in Caidian, Wuhan. The 270-mu (~18 hectares) facility, spanning 200,000 square meters, will deploy JD’s proprietary WMS, OMS, and TMS systems and achieve a daily throughput of 10,000 tons, as reported by the Wuhan Government.
Zhongtong has launched construction of a 2.5-billion-yuan Northwest Air-Road Multimodal Hub in Xi’an’s Xixian New Area. The 128-mu (~8.5 hectares) project, adjacent to Xi’an Xianyang International Airport, will focus on smart green logistics and Southeast Asia cross-border connectivity, according to China Civil Aviation News.
From Scale to Quality
China’s logistics sector has grown rapidly — total social logistics value exceeded 360 trillion yuan in 2025 with 5.8% year-on-year growth, and express delivery volume reached 182 billion parcels. However, the current phase marks a strategic shift from scale expansion to quality and efficiency improvement.
Hu Han, Deputy Chief Economist at the China Logistics Information Center, told Xinhua that over the next five years, logistics infrastructure will shift from an “extensive, scattered, single-function traditional construction model” to a “data-interconnected, organizationally collaborative modern comprehensive infrastructure system.”
Digitalization and AI Integration
Zhou Zhicheng further noted that with the completion of a national logistics big data platform and industry trusted data spaces, data sharing across rail, water, road, air, and customs departments will become a reality. “The deep integration of AI + logistics + supply chain is disrupting traditional logistics development models,” he said, pointing to the widespread adoption of automation and unmanned equipment.
Green Transformation
Green transformation is also creating new growth opportunities. Zhou highlighted that zero-carbon logistics parks and corridors will integrate solar photovoltaic, energy storage, and charging infrastructure, transforming logistics nodes from energy consumers into integrated “production-storage-utilization-regulation” energy units.
Regional Impact
The benefits of the logistics upgrade are already visible at the regional level. In Ankang, Shaanxi Province, multimodal transport has reduced container shipping costs from 12,000 yuan to 5,000 yuan per container — a 58% reduction — by connecting to the Belt & Road Initiative and the New Western Land-Sea Corridor. In Hebei Province, 42 key logistics infrastructure projects with a total investment of 50.3 billion yuan are advancing, integrating logistics into regional manufacturing and commerce supply chains.
What’s Next
As Wei Jigang, Deputy Director of the Market Economy Research Institute at the State Council’s Development Research Center, noted: “The end point of this layout will be a more efficient, more economical, and smarter new era of logistics.” With the “Six Networks” strategy providing top-level design and major corporate investments accelerating on the ground, China’s logistics transformation is poised to reshape supply chains, reduce costs across the economy, and strengthen the country’s dual circulation strategy connecting domestic and international markets.