China
China’s express delivery industry shifts toward higher-quality growth
By Han Xin, People’s Daily
China’s express delivery industry is shifting toward a new stage of transformation and upgrading. In the first half of 2026, the industry processed 100 billion parcels, up 5 percent year on year, while business revenue surpassed 770 billion yuan ($114.82 billion), up 7.3 percent. Notably, revenue growth outpaced parcel volume growth for the first time in a six-month period, signaling a structural realignment in the market.
This trend is clearly reflected in recent financial reports from major publicly listed couriers. SF Express reported a 9.3 percent year-on-year increase in core net profit (excluding one-time gains and losses), while YTO Express, Yunda Express, and STO Express each posted shareholder net profit growth exceeding 70 percent during the same period.
As profitability consistently outpacing volume expansion, the sector’s traditional strategy of sacrificing margins for market share is giving way to a more sustainable model. This marks a decisive pivot toward operational efficiency and value-driven growth.
But how is this transition unfolding, and what will drive the next phase of expansion? Major logistics providers have outlined their strategic adaptations in response to these questions.
Technological innovation is at the forefront of this shift. In June, JD Logistics — the supply chain arm of e-commerce giant JD.com — deployed China’s largest rural drone delivery network in Zizhong county, Sichuan province. The system now serves 131 administrative villages, delivering packages to remote mountain communities in as little as seven minutes.
At the Jianggao mail processing center in Guangzhou, south China’s Guangdong province, human workers collaborate with eight humanoid robots on automated sorting lines. These machines seamlessly pick, rotate, and position packages at a rate of 800 units per hour.
“A significant portion of the industry’s profit surge in the first half of 2026 stems from the maturation of digital infrastructure investments made in prior years,” explained Yu Rao, senior engineer at the Development & Research Center of the State Post Bureau. He noted that artificial intelligence is increasingly integrated across the logistics chain, with widespread adoption of drones and autonomous delivery vehicles serving as key catalysts for cost optimization and operational efficiency.
For example, YTO Express has implemented an AI-driven routing platform that analyzes historical shipment data and real-time operational costs to optimize delivery paths. During the first half of 2026 alone, the system reduced the company’s operating expenses by approximately 90 million yuan.
ZTO Express has similarly leveraged automation in customer support. Its AI-powered system now autonomously resolves roughly 90 percent of merchant after-sales requests and 70 percent of recipient inquiries from initiation to closure. “More than 60 percent of routine customer issues are now handled end-to-end by our intelligent service platform, substantially cutting labor expenditures,” said Yang Wen, chief technology officer of ZTO Express.
Fleet automation is also scaling rapidly. By the end of June, Yunda Express had more than 1,500 autonomous delivery vehicles across its network, an increase of more than 1,000 from last year. Standardizing large-scale autonomous operations has lowered transport costs at local distribution hubs by 30 percent.
Across the broader postal and courier sector, advanced technologies — including AI customer service, automated sorting, smart security screening, computer vision-based surveillance, and dynamic route optimization — are accelerating deployment. Nationwide, the industry now operates more than 16,000 autonomous delivery vehicles and over 400 drones dedicated to last-mile logistics.
“Throughout the 15th Five-Year Plan period (2026-2030), we will accelerate the integration of frontier technologies across the logistics sector and cultivate new engines of economic growth,,” said Xu Huarong, deputy director-general of the department of policy and regulation of the State Post Bureau.
Financial performance metrics further indicate that average revenue per parcel has risen across the board since the start of 2026.
“Sustained regulatory efforts to curb cutthroat price competition have been instrumental in reversing this trend,” Yu added. Following a July 2025 symposium convened by the State Post Bureau, which mandated compliance with fair competition regulations, the sector’s notorious price wars have steadily subsided. Average delivery rates have climbed incrementally, enabling firms to restore healthy profit margins.
Industry analysts observe that the sector’s traditional reliance on e-commerce-driven volume surges has plateaued. Consequently, diversifying revenue streams beyond online retail has emerged as a top strategic imperative for major couriers.
So where is the next wave of growth originating? Two key avenues stand out:
–Expanded service scenarios
JD Logistics is increasingly moving beyond basic parcel delivery to offer tailored supply chain solutions. The company now provides customized fulfillment strategies for home appliance manufacturers and integrated warehousing and last-mile delivery for supermarkets and retailers managing omnichannel sales. During the first half of 2026, its integrated supply chain division generated 59.4 billion yuan in revenue — a 18.5% year-on-year increase — positioning it as a primary growth engine.
Similarly, SF Express has pioneered specialized logistics offerings, including dedicated transport for winter sports gear and a door-to-door luggage forwarding service that enables tourists to travel unencumbered. By targeting unmet consumer demands, the company has successfully penetrated niche segments such as cultural tourism, trade exhibitions, and specialty retail. These differentiated, high-value services are establishing what executives call a “second growth curve.”
— Global and domestic market expansion
Internationally, YTO Express is broadening its cross-border footprint, launching 170 air cargo routes that span most of Asia and reach into Eastern Europe. JD Logistics is also rapidly expanding its overseas warehousing network. It now operates more than 200 overseas warehouses and direct-mail warehouses in 26 countries and regions, driving sustained rapid growth in its international business.
Domestically, couriers are targeting underserved lower-tier and more remote markets. J&T Express is penetrating remote western provinces, notably modernizing its Yinchuan distribution facility in Ningxia into a regional smart logistics hub to stimulate parcel volume in less developed areas. Yunda Express is doubling down on rural commerce, establishing village-level collection points in key agricultural production zones and deploying dedicated freight corridors to capture growing grassroots demand.
He emphasized that as competition shifts toward value creation, technological advancement, customer experience, and market diversification will define the next generation of industry leaders.
“After more than a decade of hyper-growth driven by sheer volume, the industry is transitioning away from speed-at-all-costs expansion toward a balanced model that equally prioritizes service quality and operational efficiency,” Yu concluded.
China
Two German writers retrace the Long March by bicycle
By Liu He, People’s Daily
The hall of the Chinese Cultural Center in Berlin was filled with anticipation. Many local residents arrived early to hear German writers Volker Haering and Christian Y. Schmidt share the story of their bicycle journey retracing the route of the Long March (1934-1936), a military maneuver by the Chinese Workers’ and Peasants’ Red Army that later became a defining chapter in modern Chinese history.
In 2023 and 2024, the two men set out from Ruijin, east China’s Jiangxi province. Cycling westward and then northward, they followed the path taken by the Central Red Army, eventually reaching Wuqi county in Yan’an, northwest China’s Shaanxi province, after more than four months on the road.
“If you don’t understand the spirit of the Long March, you cannot truly understand China.”
Haering still vividly remembers hearing those words more than two decades ago from a veteran Red Army soldier.
“From that moment on, I knew I had to make this journey myself,” he said with conviction.
Following in the footsteps of the Red Army
The pair began their story at Jiajin Mountain in Sichuan Province, known locally as the “Mountain of Death.”
In June 1935, the Central Red Army arrived at its foot — the first snow-covered mountain they encountered during the Long March.
“As we climbed higher, the vegetation gradually disappeared. Steep cliffs stretched into the distance, and icy winds mixed with rain and snow cut through us,” Haering recalled.
Schmidt, then 67 years old, suffered severe altitude sickness and could only continue with medication. By the time the two cyclists reached the 4,114-meter pass, they were completely exhausted.
“Ninety-one years ago, Red Army soldiers — wearing thin cotton uniforms and straw sandals, while under enemy pursuit — crossed these snow-covered mountains over seven days and nights,” Haering said. “We were riding electric bicycles and dressed in modern outdoor gear, yet we felt we had reached our physical limits.”
Schmidt agreed. “Only after experiencing it yourself can you truly understand how dangerous the snow mountains were, and only then can you fully appreciate the Red Army’s resilience and courage.”
Haering first learned about the Long March at the age of 15 and was deeply fascinated by its history. Over the following decades, he read extensively about its history.
What has enabled the spirit of the Long March to inspire generations of Chinese people?
Driven by that question, Haering, at age 54, embarked on the journey with his friend Schmidt.
The nearly 7,000-kilometer trip was far more than an adventure. It became a test of both physical endurance and determination.
During freezing nights, they often struggled to sleep. In western Sichuan province, bitter cold, strong headwinds, high altitudes, and continuous mountain roads made even downhill riding extremely difficult. In the latter half of the trip, their electric bicycles also suffered frequent mechanical failures.
Haering told People’s Daily that cycling the route helped him better understand the hardships the Red Army endured, and also gave him a greater appreciation of China’s transformation over the decades.
Encounters along the Route
If the snow mountains, grasslands and gorges revealed the harsh realities of the Long March, the people they met along the route showed them another side of China.
“We’re constantly invited to meals,” Haering joked. As they cycled through China, once locals learned they were retracing the Long March, initial reserve and wariness quickly gave way to hospitality and respect.
In a small-town restaurant, while the two were eating, a group of curious children gathered around their table. Before long, the children had become their Chinese-language teachers, patiently helping them practice pronunciation.
“The children’s smiling faces remain among the most touching memories of the entire trip,” Haering recalled.
In Xichang, Sichuan province, an experienced bicycle shop owner surnamed Dai, who had run his business for more than 30 years, helped replace their chains and tires and offered practical cycling advice. In Yan’an, an English-speaking local tour guide surnamed Li showed them around many revolutionary heritage sites.
Sharing China’s story through personal experience
“Meeting so many kind and genuine Chinese people was the greatest reward of the journey,” Haering said.
In October 2025, the two published the book Der lange Fahrrad-Marsch: 7.000 Kilometer durch das Reich der Mitte in Germany.
They subsequently held book-sharing events in Hamburg, Leipzig, Berlin, and other German cities, where many readers lined up with copies, waiting for the authors’ signatures.
“Books and articles alone are not enough if you want to help Western audiences truly understand China. First-hand experience is essential,” Haering said.
He noted that since China expanded its visa-free entry policies, increasing numbers of overseas tourists and content creators have traveled to China, documenting what they see through photos and videos.
“That is a very positive change,” he said. “When people see China with their own eyes, they can form their own judgments.”
This was far from Haering’s first effort to introduce China to Western audiences.
When he first visited China in the 1990s, he knew little about the country. More than three decades later, he has cycled over 60,000 kilometers across China, leading numerous cycling tours through both cities and rural areas. Among his friends, he has become known as a “China expert.”
During their journey across the Dadu River in Sichuan, Haering saw many newly built dams, while elevated bridges and high-speed rail lines were under construction.
Infrastructure in China has improved tremendously, he said. “Today, digital technologies such as mobile payment and electronic maps have become deeply integrated into every aspect of travel, making journeys much more convenient.”
Schmidt shared the same impression. He recalled that traveling to remote areas, especially plateau regions, once involved long and difficult journeys. Today, China’s expanding high-speed rail network has made many destinations far more accessible.
When asked how he understands the spirit of the Long March, Haering said it lies in the strength of unity and the unwavering commitment to a shared goal.
“It is a spirit of solidarity,” he added. “When people share the same purpose, work together, and pool their efforts toward a common goal, there is no obstacle that cannot be overcome.”
He believes that this spirit continues to shape today’s China. “Drawing strength from the spirit of the Long March to overcome challenges, deliver concrete results, and pursue long-term development is, in my view, one of the important reasons behind China’s remarkable achievements,” Haering said.
China
To translate the vision of a constructive China-U.S. relationship of strategic stability into action
By Zhong Sheng, People’s Daily
From Sept. 23 to 25, Chinese President Xi Jinping paid a state visit to the United States at the invitation of U.S. President Donald Trump. The visit reinforced longstanding friendship, expanded areas of mutual cooperation, and advanced the shared prosperity of both countries’ peoples.
The two heads of state held candid, in-depth discussions on key bilateral and global issues, reaching a series of new agreements. Their meeting enriched the substance of building a constructive China-U.S. relationship of strategic stability and provided new strategic guidance for bilateral ties.
The international community generally believes that the meeting between the two presidents in Washington sent “a clear signal of predictability” amid global uncertainties. The meeting is expected not only to bolster the welfare of citizens in both countries but also to strengthen prospects for international peace and sustainable development.
This rapid succession of presidential visits — occurring within a span of less than six months — is unprecedented in the long history of China-U.S. relations.
The two heads of state have maintained close exchanges and fostered a pattern of interaction marked by mutual respect and sincerity, which has become the most valuable strategic asset in China-U.S. relations. Over the past year, they have sustained regular communication through multiple channels, jointly steering the course of the China-U.S. relationship.
During Trump’s visit to China this May, the two heads of state agreed to build a constructive China-U.S. relationship of strategic stability. This new positioning reflects the realities of China-U.S. relations while expressing aspirations for their future. It marks an important step toward finding the right way for China and the United States to get along, and has been widely welcomed by the peoples of both countries and the international community.
During his visit to the United States this time, Xi urged the two sides to translate that vision into action. He made clear that China and the United States should, and fully can, achieve mutual benefit and win-win results through practical cooperation, help each other succeed through healthy competition, properly manage differences by seeking common ground while respecting differences, and build peace by fostering mutual trust, so that a constructive China-U.S. relationship of strategic stability can better benefit the two peoples and people around the world.
This important statement charted a clear course for turning the vision of building a constructive China-U.S. relationship of strategic stability into action and injected fresh impetus into the long-term development of bilateral ties.
China and the United States have deeply intertwined interests and vast potential for cooperation. Cooperation is a two-way street. A stable China-U.S. economic and trade relationship requires both expanding the list of cooperation, and shortening the list of problems.
Ahead of the meeting between the two heads of state, Chinese and U.S. economic and trade teams held a new round of consultations and reached new agreements. These outcomes offer timely benefits for businesses and consumers in both nations, while contributing to global economic stability.
It once again shows that the essence of China-U.S. economic and trade relations is mutual benefit and win-win cooperation, and that in the face of differences and frictions, equal-footed consultation is the only right choice.
As long as both sides uphold the spirit of equality, respect and mutual benefit, they can find a way to resolve their problems and thus keep China-U.S. economic and trade relations stable and moving in a positive direction.
Defining principles and respecting bottom lines is an important prerequisite for building a constructive China-U.S. relationship of strategic stability. The Taiwan question is at the very core of China’s core interests and is the first red line that must not be crossed in China-U.S. relations.
There is only one China in the world, and Taiwan is an inalienable part of China’s territory. China’s position on safeguarding national unity and territorial integrity is clear. China hopes the U.S. side will adhere to the correct position of opposing “Taiwan independence,” and handle the Taiwan question with prudence to lay a solid foundation for bilateral strategic cooperation and the development of China-U.S. ties.
Facing the changes in the world, in the times, and of historical significance today, China and the United States, as two major countries, shoulder a historic responsibility of advancing human development and progress.
Both China and the United States are leading nations in artificial intelligence (AI). While they compete in AI, they have even more reasons to cooperate, Xi said, urging the two sides to leverage respective strengths in AI rather than guard against each other.
The two sides can continue to engage in dialogue on AI, exchange views on its risks and benefits, and work together to prevent the misuse and abuse of AI. They should also maintain human control over AI technologies. A people-centered approach should be upheld, and AI should be developed for the positive and for good, so that AI will serve human progress.
Calling AI the technology that bears on the future of humanity, Trump said the United States and China should maintain dialogue and strengthen cooperation on AI.
The two presidents agreed to support each other in successfully hosting the APEC Economic Leaders’ Meeting and the G20 Summit, aiming to amplify collaborative efforts in tackling transnational challenges and strengthening multilateral governance.
Working together to accomplish more great and concrete things for the good of the two countries and the whole world is precisely what should be part of efforts to build a constructive China-U.S. relationship of strategic stability.
This year marks a pivotal juncture for both China and the United States, placing bilateral relations at a new historical threshold. The two sides should demonstrate the sense of responsibility expected of major countries, respond to the aspirations of their peoples and the trend of the times, and jointly implement the important consensuses reached by the two heads of state.
They should turn the vision of a constructive China-U.S. relationship of strategic stability into action and work toward a relationship featuring cooperation as the mainstay, moderate competition, manageable differences, and promises of peace, so that they can find the right path for the two great countries to get along on this planet they both call home.
(Zhong Sheng is a pen name often used by People’s Daily to express its views on foreign policy and international affairs.)
China
China continues to strengthen and expand advanced manufacturing
By Jin Sheping, People’s Daily
Globally, one in three cars sold today is manufactured in China. Since 2013, sales of new energy vehicles in China have surged more than 930-fold, while their share of the auto market has grown more than 590-fold, giving rise to a rapidly expanding emerging industry worth trillions of yuan.
The automotive sector exemplifies the broader growth and upgrading of China’s advanced manufacturing sector.
China’s manufacturing value added has ranked first in the world for 16 consecutive years, accounting for nearly 30 percent of the global total.
Over the past decade, value-added output in high-tech and equipment manufacturing has grown at average annual rates of approximately 10 percent and 8 percent, respectively.
China now holds a leading global position in sectors such as photovoltaics, telecommunications, high-speed rail, and shipbuilding, while robotics, AI, and innovative pharmaceuticals are accelerating rapidly.
As the Chinese economy pivots toward innovation-driven, high-quality growth, advanced manufacturing has become a central pillar of this transition.
Against a backdrop of unprecedented global shifts and a new wave of industrial transformation, China is navigating a pivotal phase of economic restructuring. To ensure long-term stability and sustainability, the country is doubling down on the expansion and refinement of its advanced manufacturing capabilities.
Even a single sheet of ultra-thin steel foil illustrates the sophistication of China’s manufacturing evolution.
In Shanxi province, a subsidiary of Taiyuan Iron & Steel (Group) Co., Ltd. produces precision stainless steel strips through fully automated processes — rolling, cleaning, polishing, leveling, slitting, and packaging. These materials, colloquially known as “hand-rip steel,” have seen their minimum thickness reduced from 0.02 mm to 0.015 mm. Having moved seamlessly from research and development to full-scale commercial production, these high-end alloys now trade at prices rivaling precious metals.
To sustain this progress, China is targeting the core drivers of “advanced” manufacturing, strategically moving beyond mid-stream assembly to capture greater value at both ends of the global supply chain — from innovation and design to branding and services.
Intelligence is reshaping China’s industrial landscape.
Leveraging cutting-edge digital technologies, the country has established over 56,000 basic-level smart factories, over 9,000 advanced-level smart factories and more than 500 excellence-level smart factories, while cultivating 15 flagship smart factories. Integrated with next-generation AI, big data analytics, and cloud infrastructure, these operations place China at the vanguard of global industrial digitization.
Global innovation in AI is now entering an exceptionally active period. Focusing on intelligent transformation, China is making next-generation intelligent manufacturing a key direction, advancing the “AI + manufacturing” initiative in greater depth and promoting comprehensive digital and intelligent transformation across more industries and enterprises.
Sustainability is equally critical to unlocking new growth trajectories.
Green development has become a hallmark of advanced manufacturing. China now hosts over 8,000 nationally recognized green factories, while sectors such as solar panels, electric vehicle batteries, and energy-saving and environmental equipment have secured early-mover advantages in emerging competitive markets.
Guided by a firm commitment to ecological conservation, China is simultaneously advancing green industrial upgrading, technological innovation, and structural optimization. This integrated approach is steadily reinforcing the country’s competitive edge in clean technology and sustainable industries.
New growth drivers for industry are also cultivated through deepening integration.
Cross-sector integration is another vital catalyst for industrial advancement. Take AI-powered eyewear, for instance: it merges machine learning, micro-sensors, and wireless connectivity to deliver real-time translation, navigation, and voice recognition.
Similarly, Luogang Park in Hefei, Anhui province, serves as a living testbed, hosting over ten distinct application scenarios — from cultural tourism to high-speed rail inspection — where emerging technologies can prove their commercial viability.
Recent years have witnessed significant breakthroughs across information technology, advanced materials, and biotechnology. These innovations are increasingly converging, giving rise to highly integrated products and multifaceted application ecosystems.
Through strategic integration, China is fostering closer ties between advanced manufacturing and modern service industries. This synergy accelerates the commercialization of novel technologies and use cases, elevating value creation across the entire production chain, stimulating cross-industry spillovers, and injecting sustained dynamism into the broader economy.
Expanding advanced manufacturing requires a coordinated, systemic approach. China is implementing targeted policies and institutional frameworks designed to translate strategic objectives into measurable outcomes.
Fundamental research remains the foundation of scientific progress and technological problem-solving. Recognizing that modern manufacturing depends on robust scientific backing, China is refining its research architecture and ramping up funding to bolster foundational science and original innovation.
Concurrently, the country is intensifying efforts to overcome bottlenecks in critical and core technologies. By accelerating the translation of research findings into commercial applications, China is helping innovative solutions transition from laboratories to production lines and consumer markets, thereby converting scientific breakthroughs into tangible economic productivity.
Ultimately, the success of this industrial transformation hinges on millions of enterprises. The challenge lies in unlocking the full creative and operational potential of diverse market participants.
To address this, China is aligning market efficiency with strategic government guidance, refining institutional frameworks to ensure coherence across fiscal, tax, financial, industrial, and science-and-technology policies. High-value resources — including capital, skilled talent, and data — are being strategically channeled into advanced manufacturing. By cultivating a business environment that is market-driven, rule-based, and aligned with international standards, China aims to build a resilient, innovation-friendly ecosystem capable of sustaining long-term industrial advancement.
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