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Ma Yun's Novice How To Face The Difficulties Of Chinese Logistics
Jun 28, 2018

The rookie network is a hot topic recently. After high-profile retirement, Ma Yun also spent a high-profile investment of several hundred billion yuan to build Cainiao Networks. He claimed to build China's intelligent backbone network. There is no doubt that if his dream comes true, the development of China's logistics industry will inevitably undergo tremendous changes. But can the "rookie" promote and solve the ills that hinder the development of China's logistics industry?

The rookie network will form a set of open social storage facilities network and data application platform through various modes such as self-building, co-construction, cooperation and transformation. Ma Yun interpreted this as: "After 10 years, anywhere in China, as long as online shopping, 24-hour delivery, but also support 10 million courier service is very smooth, so that the roads, highways, railways to better play the channel the power of."

Arrive anywhere in the country for 24 hours. What is the concept? The data shows that of the 2860 lines of the nation's nine largest logistics companies, less than 50% of the 2,860 can be delivered on the 3rd. This is the current status of China's e-commerce, logistics has seriously affected the online shopping customer experience.

Although the "rookie" is lofty, the pressure can be imagined. It can not bypass the problems of taxes and fees in the circulation industry in China. For example, the distribution company bears highway logistics charges and fines. According to public statistics, the total amount of highway tolls announced by the Ministry of Transport in 2011 was as high as more than RMB 280 billion. In the same year, CCTV disclosed that the annual fines for road fines amounted to more than 400 billion yuan, and the two items totaled nearly 700 billion yuan. Statistics from the China Federation of Logistics and Purchasing also show that road and bridge fees paid by long-distance logistics companies account for 20% to 30% of operating costs.

For another example, nearly 90% of fresh and live agricultural products in large and medium-sized cities in China are distributed through the wholesale market. The burden of booth fees, personnel management fees, and tax and transaction fees charged by the market has pushed up circulation costs and pushed up prices of agricultural products. In addition, acrylic products are generally high-end products, because they have good physical properties, so the packaging is general, but extensive shipping logistics links, it is still up to 5% of its broken rate.

According to a report from the Ministry of Commerce, the overall tax burden of the circulation industry in China is 26.4%, which is 4.6, 5.8, and 13.6% higher than real estate, finance, insurance, and information and communication industries.

Fortunately, high-level officials have decided to crack down on "Chinese-style" logistics issues. The General Office of the State Council has recently issued the "Deepening the Reform of the Circulation System and Accelerating the Division of Labor of Key Circulation Industry Development Departments", emphasizing the reduction of the tax burden on circulation industries and the reduction of circulation costs. Ensure that all vehicles that legally load and transport live agricultural products are all exempted from vehicle tolls, optimize the structure of bank card credit card fees, reduce the overall cost level, and expand the use of bank cards. Within a certain period of time, it is exempted from the agricultural product wholesale market, farmers' market town land use tax and property tax. The VAT policy on exemption from circulation of vegetables was extended to conditional fresh agricultural products. We will actively promote the trials for changing business value-added tax (VAT) and improve the circulation tax system.

In short, if the above problems in logistics are solved, the success of the "rookie" is just around the corner. Through the "rookie" attempt, it is not difficult to see that the transformation and upgrading of the logistics industry will be realized by means of informatization. It will have realistic and long-term implications for the development of the logistics industry and the entire emerging service industry.

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