China passes plan for logistics development

China's State Council, the Cabinet, on Wednesday approved a plan for the development of the logistics industry.

The plan specifies 12 key projects in the sector, including farm produce logistics, manufacturing logistics and supply chain management, as well as logistics for the recycling of renewable resources, said a statement after a cabinet executive meeting.

The country should have a modern logistics service system in place by 2020 to make the sector more standardized, information-based and intelligent, as well as raise its overall efficiency and profitability, the statement said.

The meeting, presided over by Premier Li Keqiang, highlighted three priorities in the construction of a modern logistics system - reducing overall cost, promoting large-scale operation and improving infrastructure.

The meeting also decided to implement a single tax rate of 3 percent for companies engaging in running water supply, small-scale hydropower generation and other areas from July 1. Their tax rates currently range from 3 percent to 6 percent.

The cut will reduce the burden of those companies by 24 billion yuan (3.9 billion U.S. dollars) each year, the statement said.