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BEIJING, Aug. 20 (Xinhua) -- China has vowed more efforts to build an effective logistics system with the hope of facilitating consumption.


Calling modern logistics a "major industry" in the national economy Cheap Thomas Davis Sr Jersey , the State Council, China's cabinet, said during an executive meeting on Wednesday that measures would be taken to lower logistics cost, encourage competition and strengthen supervision.


The total cost of logistics in China is high. In 2014 Cheap Greg Olsen Jersey , logistics costed 10.6 trillion yuan (1.66 trillion U.S. dollars), or the equivalent of 16.6 percent of China's GDP. In the United States and Japan, the ratio of logistics cost to their GDP stood at around 8 percent last year.


China aims to bring down the ratio to 15.6 percent by 2020, the National Reform and Development Commission Cheap Kawann Short Jersey , China's top economic planning agency, said in a document released last week.


A lack of efficiency caused by low level application of information technology in transportation and warehouse management explains the high logistics cost, said Li Shaojun, an analyst with Minsheng Securities.


Last year Harrison Butker Jersey , 76.1 percent of goods were transported by highway, beating railway, waterway, pipelines and air freight. Huge number of management staff and intermediary personnel are involved in the highway transport Daeshon Hall Jersey , which pushed up the cost and resulted in low efficiency.


The State Council said on Wednesday that it would strengthen oversight on goods that have "an important bearing on people's lives and health," including farm produce, food and pharmaceutical. A wider digital system which enables consumers to track the information of such goods on the market all the way back to their producer will be established.


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