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ion *US China Business Council The Pattern of Trade is Changing 10 R:\market\ppt\ logistics in china Logistics in China ? Retail Sales + % but Chain Store Growth + 27% ? Chain Stores have now risen to 20% of total ? One example : ? We will see bigger panies operating across regions ? And centralising facilities in different regions to lower cost *China Chain Store and Franchise Association With Growth es Consolidation 11 R:\market\ppt\ logistics in china Logistics in China ? General tariff reduction to average of % by 2023 (IT to zero) ? Import quota removal by 2023 ? Full trading and distribution rights to foreign firms within 3 years ? Relaxation of ownership restrictions ? Restrictions on own provision of services being phased out including Warehousing, Freight Forwarding, Transport, Express Delivery and Air Courier etc ? Relaxation of protocol provisions and better services ? Leading to an increase in Chinese Global petitiveness and local adoption of World’s Best Practice (eg ) Aspects of China’s Entry to the WTO 12 R:\market\ppt\ logistics in china Logistics in China ? Increasing viability of rail transportation to Hub (+1500 kms) ? Supplemented by Road to customer (+3000 kms) ? Increasing opportunity for Major Distribution and Logistics facilities “More than 55% of foreign panies rate Logistics and Distribution as their single greatest challenge” Development of Transport Infrastructure *Singapore University Research Study 13 R:\market\ppt\ logistics in china Logistics in China ? Growth in China ? Consoli