China’s bailout package includes infrastructure development
It’s been a while since we linked to our colleague at Asia Logistics Wrap, but he’s got a newly revamped site and has been blogging up a storm. Today he highlights one of the key aspects of China’s announced bailout package of $586 billion: infrastructure:
China’s supply chains stretching into the less developed western regions have often been hampered by less than ideal public infrastructure–such as roads, rail and airports. This physical architecture can greatly enhance performance in existing supply chains and allow entrepreneurs to develop new opportunities where the quality of public infrastructure either makes or breaks a business:
Read the whole thing where he also posts a very useful graph comparing the cost of moving and storing goods as a share of GDP between China and the U.S. While it’s no surprise to see China’s costs so high compared to the U.S., what’s interesting is that they have slowly, but steadily, trended downwards.
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