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Photo: Internet
BEIJING， Aug. 27 (Xinhua) -- China aims to reduce the cost of its logistics sector to alleviate the burden on companies and improve their business environment， the Ministry of Transport said.


The country plans to reduce the proportion of logistics costs to the total value of goods carried by the sector by 0.5 percentage point from the current 4.9 percent in the next three years， according to the ministry.


To achieve that， a slew of measures will be taken， including cutting highway tolls and removing illegal fees charged by airports， ports and railways.


It is part of the country's efforts to bring down corporate costs as a whole， in line with the ongoing supply-side structural reform designed to facilitate industrial upgrade and boost the slowing economy.


The State Council released a work scheme on Monday on cutting corporate costs， planning lower tax burdens， cheap financing， reduced red tape as well as more affordable land use， energy consumption and logistics.


Logistics costs account for a significant proportion of corporate costs in China. The ratio of logistics costs to gross domestic product (GDP) had been over 16 percent for years， the National Development and Reform Commission (NDRC)， China's top economic planner， said in an article posted on its website on Friday.


The ratio was 14.6 percent in the first half of 2016， down from 15.4 percent a year earlier.


By reducing the ratio of logistics costs to the GDP by 1 percentage point， China can help industrial businesses save more than 900 billion yuan (135 billion U.S. dollars).


Despite declines in the past few years， much room remains for further decreases， the article said， adding such ratio in China is about twice that of the United States and 1.3 times the level of India.


The logistics sector saw the total value of goods carried between January and June this year grew 6.2 percent year on year， faster than the 5.7 percent in the same period of last year， according to the article.


China's total logistics costs rose 2.7 percent year on year in the first half of this year， slower than the 4.5-percent growth recorded in the same period last year.

Chinese Vice-Premier Ma Kai (left) Jake DeBrusk Bruins Jersey , Vice-President of the European Commission in charge of Economic and Monetary Affairs Olli Rehn (center), and European Commissioner for Trade, Karel De Gucht, during a news conference at the European Commission headquarters in Brussels, Belgium Charlie McAvoy Bruins Jersey , on Oct 24. [provided to China Daily]

Although strategic partnerships will be the main focus of the China-EU summit that begins on Nov 21 in Beijing, expectations are rife that the two sides will eventually sign an investment agreement that aims among other things to reduce simmering trade tensions.


According to experts, this China-EU summit is of "special importance" because it will set the tone for future bilateral engagements. Free trade negotiations between China and the EU had not made much progress in the past, because Brussels has yet to grant market economy status to Beijing.


From a European perspective, the current summit is also a rare opportunity to study and observe the new Chinese leadership Rick Nash Bruins Jersey , especially after the just-concluded Third Plenary Session of the 18th CPC Central Committee.


"I hope this summit is more of a consolidation effort and less of conflict," says Glyn Ford, a five-times former member of the European Parliament. "The European side will be getting to know the new Chinese leadership at close quarters and there will be incremental, rather than radical, moves in political and economic relations."


The two sides are expected to discuss trade and investment Tim Schaller Bruins Jersey , human rights, innovation, urbanization, rule of law, people-to-people exchanges and defense and security at the meeting. Discussions will also center on respective domestic situations and other major global issues such as G20 cooperation.


Jonathan Holslag Torey Krug Bruins Jersey , a researcher at the Brussels Institute of Contemporary China Studies, says that although the upcoming summit, the highest political dialogue platform since 1998, is of importance, nothing new seems to be on the horizon.


"The main objective is to get acquainted with the new leadership in China and to probe its priorities toward Europe David Krejci Bruins Jersey ," Holslag says.


Holslag says it is clear that China considers good relations with Europe a top priority. "Trade relations have normalized somewhat, but it remains to be seen whether the investment treaty will signal a new era in economic partnership," he says.


Bernard Dewit, president of the Brussels-based Belgian-Chinese Chamber of Commerce, says the summit illustrates the need for dialogue between the two sides Danton Heinen Bruins Jersey , especially as the economies are becoming more interdependent.


Beyond the investment agreement negotiations, Dewit hopes that both sides will agree on the feasibility studies for a free trade agreement. The FTA is expected to help Chinese and European companies to invest in and access each other's markets.


"The new Chinese leadership is clearly willing to reinforce the EU-China strategic leadership and has recognized the importance of the EU in the global economy," Dewit says. "On the other hand, the EU is also serious about deepening its political and economic ties with China."


Christopher Dent, professor of East Asia's International Political Economy at the University of Leeds in the UK Zdeno Chara Bruins Jersey , says that future Sino-EU ties will hinge on closely inter-related issues such as energy, resources and climate change.


"Both sides face stiff challenges on these fronts, challenges that will only become more critically important over time," Dent says.


"China and Europe are championing the global efforts on green energy and other sustainable technologies. There is immense scope for cooperation between the two sides," Dent from the University of Leeds says.


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