How AI, delivery drones helped China cut logistics costs to a new low

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In 2025, China's logistics efficiency reached a new high, with the ratio of total social logistics costs to GDP falling to a record low of 13.9%. This improvement, driven by infrastructure investment and the adoption of technologies like AI, delivery drones, and unstaffed warehouses, signifies progress towards Beijing's goal of a more efficient logistics market. While these technologies are still in early stages of adoption, they contributed to a 5.1% real-terms increase in the total value of China's logistics market, reaching 368.2 trillion yuan. Parcel deliveries also saw significant growth, climbing 11.8% to 216.5 billion. The Chinese government aims to further reduce the logistics cost-to-GDP ratio to around 13.5% by 2027.
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