Reducing the gap
The expanding parcel delivery network in China has reduced the gap between urban and rural areas, providing rural residents with access to urban commodities and facilitating the flow of agricultural products to cities.
Xie and Zhao's experience mirrors a larger trend across China, driven by the rapid growth of the country's parcel delivery sector. On Nov 17, 2024, China's parcel delivery industry reached a milestone, handling a record 150 billion parcels within a year. This marks the country's economic resilience and the efficiency of its logistics and e-commerce systems.
This surge in parcel deliveries highlights logistics' role in China's economy. In 2024, the average Chinese consumer is expected to receive over 100 parcels annually, with the country's delivery network processing more than 5,400 parcels every second.
"On one hand, China's express delivery industry ensures the well-being of the residents, while on the other, it stimulates production. This virtuous cycle contributes to economic growth and strengthens China's leadership in the global supply chain," said Zhao Guojun, director of the Postal Development Research Center at Beijing University of Posts and Telecommunications.
The rapid growth of China's express delivery sector is closely tied to the explosive expansion of its e-commerce market, which continues to drive demand for faster and more efficient delivery services. As the world's largest e-commerce market, China generates massive business for the logistics industry, with online shopping becoming a cornerstone of daily life for many.
According to a report released in 2022 by iResearch, a digital economy consultancy, over 80 percent of domestic express delivery packages in China are e-commerce products. The volume of e-commerce packages is projected to exceed 157.6 billion by 2027, accounting for approximately 81 percent of the total express delivery market, according to a report by ZTO Express last year.
However, the high cost of shipping to remote areas has long been a challenge, especially in western China. This bottleneck has prevented many rural consumers from enjoying fast, affordable deliveries. But by 2024, strides have been made to address this issue.