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Next 'China' is still China, says DHL Group CEO

Top exec: Nation's manufacturing value chain 'indispensable' to firm

By ZHENG XIN | China Daily | Updated: 2025-01-17 09:55
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Visitors gather at DHL's booth during the seventh China International Import Expo in Shanghai in November. HU XUEBAI/FOR CHINA DAILY

China's push to strengthen foreign trade through new policies presents fresh opportunities for logistics firms like DHL to expand, with the company reaffirming its long-term commitment to the market, said DHL Group CEO Tobias Meyer.

Despite global economic headwinds, Meyer emphasized that China remains a vital part of DHL's global strategy, with continued investments in facilities, e-commerce, and sustainability initiatives.

"China remains a powerhouse of global trade and one of the most important markets for DHL Group," said Meyer.

"We will continue to invest in facilities and employees to grow business here as the manufacturing value chain in China is so deep and has such a capacity that it will remain indispensable. We have confidence in the Chinese market and our long-term commitment remains unchanged."

According to Meyer, as one of the most important economies in Asia, China continues to play the role of an engine and make important contributions to regional economic growth.

Its size, huge consumption demand and complete industrial and supply chains make the Chinese market competitive while the country's continued opening-up will ultimately lead to an improved business environment, he said.

Despite recent global economic challenges and trade tensions, including tariffs and protectionism, Meyer said China's growth continues to outpace the global trade average, and its trade with regions like Southeast Asia, Latin America, and the Middle East is still growing fast.

"Even as some companies shift manufacturing outside of China, many still rely on Chinese components. The manufacturing value chain in China is so deep and its capacities so vast that it will remain indispensable in the coming years," he said.

"The next 'China' is still China," Meyer said.

Joe Ngai, chairman of consultancy McKinsey China, said there is no substitute for the Chinese market, either as a market for products or in terms of demand.

According to a report by the Asian Development Bank, China contributes more than 60 percent to the economic growth of Asia, and 37.6 percent and 44.6 percent of the growth in trade in goods and in trade in services, respectively.

Over the past few years, China's expanding manufacturing and consumption base, coupled with its role as a key player in global trade, has made it an even more integral part of DHL's operations, said Meyer.

DHL has made significant investments in China's logistics infrastructure, including over 2 billion yuan ($270 million) in recent years to upgrade and expand facilities across key economic regions, such as the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area.

"We are well-positioned to offer integrated logistics solutions to e-commerce platforms, whether through air, sea or road transport, which we believe will continue to be a major growth driver for DHL in China in the coming years," he said.

Zhang Jianping, deputy director of the academic committee at the Chinese Academy of International Trade and Economic Cooperation, said China's ongoing efforts to improve the business environment have made it increasingly attractive to foreign companies.

China will remain a key driver of global economic growth and a stabilizing force in international supply chains, he said.

Despite the challenges presented by a weak global economic recovery and escalating trade tensions, Meyer remains optimistic about DHL's outlook in China.

Looking ahead, Meyer highlighted several key sectors where DHL anticipates significant growth in China over the next five to 10 years, including e-commerce, healthcare, automotive and green energy.

China, the world's largest EV manufacturer and exporter, is poised to play a central role in global decarbonization efforts, and DHL is positioning itself to support the logistics needs of the rapidly expanding EV sector, he said.

"As China continues to evolve as one of the world's largest and fastest-growing logistics markets, DHL is focused on expanding its footprint and investing in its infrastructure to keep pace with the country's robust economic growth and environmental goals," said Meyer.

"China is and will remain one of the most important markets for DHL Group. We want to be the bridge that connects China with the world and the world with China. We are confident in the long-term potential of the market, and our commitment to it remains unchanged."

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