[CIIE] Int’l Logistics Giants Giants Tap New Growth in Chinese Firms' Global Push(Yicai) Nov. 11 -- The overseas expansion of Chinese businesses is creating new growth points for global logistics providers, whose services also now include coordinating the flow of raw materials, parts, and finished products between multiple countries and regions, and in some cases managing entire supply chains.
Companies such as DHL Group, DSV, China Cosco Shipping, and CMA CGM Group, showcased their global transportation networks, overseas port operations, and digital logistics assets to Chinese businesses at this year’s China International Import Expo in Shanghai, which ended yesterday.
As Chinese businesses establish production bases and sales networks across Southeast Asia, the Middle East, Europe, and Latin America, their logistics needs are becoming more sophisticated, a representative at DSV's exhibition stand told Yicai.
Their needs have moved beyond international shipments, as these businesses increasingly require integrated services spanning warehousing, distribution and fulfilment, customs declaration and clearance, and end-to-end supply-chain visibility, the person pointed out.
“Chinese companies have moved beyond exporting products and cooperating on production capacity,” the rep said. “They’re now taking their industrial and supply chains overseas in a more systematic way.”
Even though foreign multinational companies in China are still DSV’s main clients in the country, Chinese firms expanding overseas have also become an important growth driver for the Danish company’s local business, the person pointed out.
DSV’s client portfolio in China spans a wide range of sectors, including high-tech manufacturing such as semiconductors, batteries, photovoltaics, and energy storage, as well as automotive, industrial manufacturing, cross-border e-commerce, luxury goods, home appliances, consumer electronics, aerospace, healthcare, and pharmaceuticals.
These sectors share a number of common characteristics. Their products tend to be high-value, their manufacturing processes are complex, and their operations span multiple overseas markets. This creates greater demand for logistics services that are timely, secure, and reliable, the rep said.
DSV set up a dedicated team three years ago to support Chinese companies expanding overseas. It has also stationed personnel in key markets targeted by Chinese businesses, drawing on staff who understand Chinese business culture and are familiar with local regulations and operating practices, the person said.
Editors: Tang Shihua, Futura Costaglione
