Page 234 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
Beijing may soon take care of its aviation woes when wider range of choices in the type of services. SPB plans
the new Beijing Daxing International Airport opens in to also call for a better connection of its logistics services
2019. With a projected cost of $13 billion, Daxing will to the global network and improvements concerning
rank as China’s most expensive airport. That money will the coverage and efficiency of international express
build a 7.5-million-square-foot passenger terminal, seven deliveries. Logistics companies currently operate 183,000
runways, 78 gates, and a transportation hub connecting shipping facilities throughout the country, including small
to both local and high-speed rail lines. The current major offices that handle inbound and outbound shipments.
airport for China’s capital city is the aptly named Beijing In addition, shipping services plan to build another 200
Capital, with a capacity of 80 million passengers a year, large distribution centers around the country in coming
opened 20 miles northeast of the city center in 2008 for years. The government will promote the logistics sector
the Olympics. Less than a decade old, it’s already ranked through the Internet Plus action plan, enhance delivery
as the world’s second busiest airport and is stretched security, and boost resource efficiency so that the sector
well over capacity, with 94.4 million passengers in 2016. will develop in an environment-friendly way, the Xinhua
At 104 million passengers in 2016, Atlanta’s Hartsfield- report noted (Fenema).
Jackson International Airport will still hold the number
one spot for must-flyers, but Capital and Daxing airports Almost 3.5 billion letters were mailed in China from
together will be capable of welcoming more than 170 February 2016 to February 2017 (Statista). That’s a large
million travelers through Beijing each year, with Daxing number until you know China’s SPB says 17.32 billion
carrying the brunt of the load with a 100 million annual parcels were delivered in the first half of 2017, a 30.7
capacity (Drescher). percent increase from the previous year. It is no surprise
that 70 percent of those packages came from online
CAAC is developing six airport clusters: China’s transactions. Chinese consumers and businesses are
north region, northeast, central, south, southwest and ordering more online and that’s driving parcel delivery
northwest. These plans include building 74 new airports volume higher each year. While 98 percent of those
by 2020 according to the new plan released in 2017. deliveries originated in China, there were 360 million
Thirty of those airports are already under construction, international parcels delivered in the first half, a 29.2
while another 40 will be built over the next three years. percent increase over the same period a year earlier.
“These projects would make trips to China’s third- China’s growing middle class covets imported goods,
tier cities (generally the medium-sized cities of each and the country’s leading e-commerce operators
province) much easier,” the CAAC said. During China’s have responded by creating special sections of their
week-long 2017 Spring Festival holiday, more than 80,000 e-commerce sites where consumers can order goods
flights were operated by domestic Chinese airlines and from abroad that enter China under relaxed cross-
9.8 million passengers were carried by them, the latest border e-commerce rules. Those rules don’t require the
CAAC data shows. That pushed the number of flights certifications demanded when retailers bring goods
up by 12 percent and passenger traffic up 15 percent into China in bulk (Tong). The SPB data showed that
over the previous year. New airports for cargo transport Guangzhou was the city with the most express deliveries
across China will be developed as well. The airport boom made in 2016, followed by Shanghai, Shenzhen, Beijing
is good news for Boeing, which is hoping to sell Chinese and Hangzhou (Xinhua).
airlines all the planes they need to meet surging demand
for air travel among China’s new vacationing middle class. More than 15 percent of Chinese purchased
Boeing is also setting up a 737 interiors completion plant e-commerce goods from abroad in 2016. These 181.2
in China (McIntosh). million e-commerce customers represented a 41.6
percent increase over 2015 when 128 million Chinese
Postal and Express Delivery engaged in cross-border online purchases. Companies
such as Alibaba, which has a significant stake in
According to the State Post Bureau (SPB), the country’s the regional online economy, are celebrating this
postal regulator, China wants to further expand the transnational trend, however they also reflect a broader
country’s courier express network and develop its shift in the Chinese economy toward e-commerce.
domestic logistics market as the world’s largest by 2020. China’s overall e-commerce activity increased by more
The government agency claims that by then all post and than 70 percent, or 30 percent more than its cross-border
deliveries shall be traceable and customers will have a equivalent. Alibaba founder Jack Ma has been vocal
234
Beijing may soon take care of its aviation woes when wider range of choices in the type of services. SPB plans
the new Beijing Daxing International Airport opens in to also call for a better connection of its logistics services
2019. With a projected cost of $13 billion, Daxing will to the global network and improvements concerning
rank as China’s most expensive airport. That money will the coverage and efficiency of international express
build a 7.5-million-square-foot passenger terminal, seven deliveries. Logistics companies currently operate 183,000
runways, 78 gates, and a transportation hub connecting shipping facilities throughout the country, including small
to both local and high-speed rail lines. The current major offices that handle inbound and outbound shipments.
airport for China’s capital city is the aptly named Beijing In addition, shipping services plan to build another 200
Capital, with a capacity of 80 million passengers a year, large distribution centers around the country in coming
opened 20 miles northeast of the city center in 2008 for years. The government will promote the logistics sector
the Olympics. Less than a decade old, it’s already ranked through the Internet Plus action plan, enhance delivery
as the world’s second busiest airport and is stretched security, and boost resource efficiency so that the sector
well over capacity, with 94.4 million passengers in 2016. will develop in an environment-friendly way, the Xinhua
At 104 million passengers in 2016, Atlanta’s Hartsfield- report noted (Fenema).
Jackson International Airport will still hold the number
one spot for must-flyers, but Capital and Daxing airports Almost 3.5 billion letters were mailed in China from
together will be capable of welcoming more than 170 February 2016 to February 2017 (Statista). That’s a large
million travelers through Beijing each year, with Daxing number until you know China’s SPB says 17.32 billion
carrying the brunt of the load with a 100 million annual parcels were delivered in the first half of 2017, a 30.7
capacity (Drescher). percent increase from the previous year. It is no surprise
that 70 percent of those packages came from online
CAAC is developing six airport clusters: China’s transactions. Chinese consumers and businesses are
north region, northeast, central, south, southwest and ordering more online and that’s driving parcel delivery
northwest. These plans include building 74 new airports volume higher each year. While 98 percent of those
by 2020 according to the new plan released in 2017. deliveries originated in China, there were 360 million
Thirty of those airports are already under construction, international parcels delivered in the first half, a 29.2
while another 40 will be built over the next three years. percent increase over the same period a year earlier.
“These projects would make trips to China’s third- China’s growing middle class covets imported goods,
tier cities (generally the medium-sized cities of each and the country’s leading e-commerce operators
province) much easier,” the CAAC said. During China’s have responded by creating special sections of their
week-long 2017 Spring Festival holiday, more than 80,000 e-commerce sites where consumers can order goods
flights were operated by domestic Chinese airlines and from abroad that enter China under relaxed cross-
9.8 million passengers were carried by them, the latest border e-commerce rules. Those rules don’t require the
CAAC data shows. That pushed the number of flights certifications demanded when retailers bring goods
up by 12 percent and passenger traffic up 15 percent into China in bulk (Tong). The SPB data showed that
over the previous year. New airports for cargo transport Guangzhou was the city with the most express deliveries
across China will be developed as well. The airport boom made in 2016, followed by Shanghai, Shenzhen, Beijing
is good news for Boeing, which is hoping to sell Chinese and Hangzhou (Xinhua).
airlines all the planes they need to meet surging demand
for air travel among China’s new vacationing middle class. More than 15 percent of Chinese purchased
Boeing is also setting up a 737 interiors completion plant e-commerce goods from abroad in 2016. These 181.2
in China (McIntosh). million e-commerce customers represented a 41.6
percent increase over 2015 when 128 million Chinese
Postal and Express Delivery engaged in cross-border online purchases. Companies
such as Alibaba, which has a significant stake in
According to the State Post Bureau (SPB), the country’s the regional online economy, are celebrating this
postal regulator, China wants to further expand the transnational trend, however they also reflect a broader
country’s courier express network and develop its shift in the Chinese economy toward e-commerce.
domestic logistics market as the world’s largest by 2020. China’s overall e-commerce activity increased by more
The government agency claims that by then all post and than 70 percent, or 30 percent more than its cross-border
deliveries shall be traceable and customers will have a equivalent. Alibaba founder Jack Ma has been vocal
234
