Survey: Most 3PLs in China work without local partners
Third-party logistics providers (3PLs) increasingly operate in China without a local partner, according to a survey by Eyefortransport.
Of those surveyed, 68 percent are working in China without any Chinese joint venture partner, the “3PLs’ Views on the Logistics Landscape in China” survey found.
“With regulations on internationally owned companies operating in China being gradually eased, and the government lifting previous restrictions a few months ago due to increasing demand for wholly foreign-owned enterprises, it appears that many global players have opted to set up independently,” the survey said.
For the 32 percent that do work as part of a joint venture structure respondents were asked what they felt were the key benefits to their company in maintaining this strategy. Of these, 32 percent believed the key benefit of working as a joint venture is the improved operational knowledge and expertise they can gain and 26 percent viewed increased brand awareness and reputation within the industry as a key benefit.
“This most likely reflects the struggle for many international players to develop a competitive business in China,” Eyefortransport said.