China’s H1 Logistics Hits 181.1 Trillion Yuan, Outpacing GDP

China’s total social logistics value reached 181.1 trillion yuan (approximately $25 trillion) in the first half of 2026, marking a 5.1 percent year-on-year increase that outpaced GDP growth by 0.4 percentage points, according to data released on July 29 by the China Federation of Logistics and Purchasing (CFLP).

The social logistics total, which tracks the value of all goods in motion across the economy, serves as a critical barometer of economic activity. The logistics sector demonstrated steady expansion despite a deceleration from 6.2 percent growth in the first quarter to 4.4 percent in the second quarter. The figures, published by Xinhua News, indicated that total social logistics costs reached 9.6 trillion yuan, up 4.6 percent year-on-year, with the cost-to-GDP ratio declining to 13.9 percent—continuing a decades-long improvement from approximately 18 percent.

Structural Shift Toward High-End Manufacturing

A transformation in the composition of logistics demand was the standout feature of the data. While traditional sectors remained subdued, high-tech and digital manufacturing surged. Industrial logistics grew 5.4 percent overall, but high-tech manufacturing jumped 13.3 percent and digital products manufacturing rose 12.3 percent—both significantly outpacing the broader industrial average.

As CCTV News reported, CFLP spokesperson Zhou Zhicheng noted that “high-end manufacturing, equipment technology, and consumer logistics demand are growing faster than traditional sectors,” adding that the trends toward “internationalization, high-end orientation, and green transformation are very pronounced.”

The shift was equally evident in import logistics. While crude oil imports fell 11.4 percent and steel dropped 11.3 percent—reflecting China’s ongoing property sector adjustment and energy transition—semiconductor manufacturing equipment imports surged 20.4 percent and integrated circuit imports rose 8.1 percent. This divergence underscores China’s strategic pivot toward technological self-sufficiency amid ongoing US-China trade tensions.

Liu Yuhang, director of the China Logistics Information Center, told CCTV that “import logistics demand for industrial upgrading remains strong, offsetting bulk commodity weakness,” adding that the “import structure is shifting from bulk commodities to high value-added categories.” Equipment investment rose 8.1 percent, further underscoring the industrial upgrading trend.

Consumer and Green Logistics Trends

Consumer-related logistics grew 3.8 percent in the first half, with online retail expanding 4.8 percent and rural retail rising 2.5 percent—signals that consumption, while moderate, continues to shift toward digital channels and expand into less-developed regions. The steady convergence of rural logistics with urban standards reflects ongoing policy efforts to integrate domestic markets.

Renewable resource logistics rose 5.4 percent, outpacing the overall logistics growth rate by 0.3 percentage points. The expansion of industrial solid waste recycling and power battery recovery programs reflects the integration of green manufacturing with reverse logistics, consistent with China’s dual-carbon objectives.

In production, integrated circuit output climbed 23.1 percent and lithium-ion battery production surged 39.3 percent, highlighting the rapid scaling of advanced manufacturing capacity that will drive future logistics demand. These figures align with the “new quality productive forces” policy framework that prioritizes high-tech, green, and digital industry development.

Cost Structure and Efficiency

According to China News Service, total social logistics costs of 9.6 trillion yuan comprised transport costs of 5.4 trillion yuan (up 3.9 percent), storage costs of 3.1 trillion yuan (up 7.0 percent), and management costs of 1.1 trillion yuan (up 1.4 percent). The relatively faster growth in storage costs—nearly double the rate of transport costs—suggests rising inventory holding pressures that warrant monitoring. Transport and management costs declined as shares of total costs, while storage costs rose 0.7 percentage points.

The continued decline in the cost-to-GDP ratio, however, points to sustained structural improvements in logistics efficiency, supported by policy priorities under China’s 15th Five-Year Plan.

Outlook

The H1 logistics data paints a picture of an economy in transition—one where traditional heavy-industry logistics gives way to high-value, technology-intensive supply chains. The second-quarter deceleration from 6.2 percent to 4.4 percent bears watching, as does the rising cost of storage relative to transportation.

As the US-China technology competition continues to reshape global trade patterns, China’s logistics sector is adapting rapidly, prioritizing semiconductor equipment, advanced electronics, and new energy products over bulk commodities. This structural realignment, supported by government industrial policy and the new quality productive forces framework, positions logistics as a key driver of China’s next phase of economic development.