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
The story behind ‘people’s apples’
By Zhang Yang, Liu Hongchao, People’s Daily
During the summer vacation, the Liaoshen Campaign Memorial in Jinzhou, northeast China’s Liaoning province, has seen a constant flow of visitors. Hanging quietly on the wall inside the Hall of Martyrs is a time-worn silk banner bearing the words “An Army of Benevolence and Righteousness,” behind which lies a poignant historical tale.
Behind the banner is a moving story.
During the 1948 Liaoshen Campaign, orchards surrounding Jinzhou were heavy with ripe apples. Passing through the area, People’s Liberation Army soldiers were exhausted and thirsty, but not a single one picked an apple. The people’s army, under the leadership of the Communist Party of China, won the hearts of the people through its strict discipline.
“Here the fighters were conscious that not eating the apples was noble, whereas to eat them would have been ignoble. They knew the apples belonged to the people,” Chinese President Xi Jinping quoted late Chairman Mao Zedong’s comments on the story during an inspection tour to Liaoning in 2022.
Decades later, the tale endures as a powerful symbol of integrity.
Today, as China deepens its efforts to promote clean governance and institutional accountability, the story is being actively revived to inspire contemporary officials.
About a 20-minute drive from the Liaoshen Campaign Memorial is the Jinzhou Apple Integrity Education Base, where a sculpture entitled the “People’s Apples” stands out. Inside the special‑themed exhibition hall, docent Sun Yimeng was giving a vivid account, guiding visitors through historical photos and precious cultural relics.
“We take the ‘People’s Apples’ as our underlying theme to convey to every visitor the Communist Party of China’s fine conduct, strict discipline and original aspiration to serve the people, ” said Sun.
“Declining the apples reflects discipline; avoiding even the smallest exploitation of citizens demonstrates dedication to public service. We must carry forward the revolutionary heritage, uphold our revolutionary legacy, foster and put into practice a correct approach to evaluating political performance, exercise power with integrity, and effectively protect and advance the interests of the people,” said Guan Hua, an official with the Jinzhou municipal people’s congress, during a study visit.
Jinzhou has translated this historical lesson into actionable governance. On one front, the city enforces a zero-tolerance stance toward corruption in sectors directly impacting livelihoods, including rural collective assets, healthcare, and education. Targeted campaigns have been launched to root out misconduct that harms ordinary citizens. On another, Jinzhou focuses on “growing apples for the people” by improving the business climate. The local government has institutionalized dialogue with enterprises, established direct policy-delivery channels, and implemented 32 regulatory frameworks to streamline operations and support sustainable growth.
Clean governance, officials stress, is not merely about restraint — it is a foundation for effective public service. To embed accountability into daily operations, inspectors from Jinzhou’s Municipal Commission for Discipline Inspection now work alongside staff at the city’s 12345 public service hotline and government service centers. A QR code-based oversight system has been rolled out across all 283 service windows, enabling real-time feedback and monitoring. The results are tangible: government services in Jinzhou have become increasingly standardized and efficient. Over 900 administrative procedures can now be completed on the same day, with many finalized in under two hours.
From a wartime promise of restraint to a modern blueprint for transparent administration, the “People’s Apples” story continues to remind officials that true authority flows from serving the people with integrity.
“The tests of the times keep evolving, yet our original aspiration to serve the people remains unchanging,” said Zhao Yu, an official with the Jinzhou municipal commission for discipline inspection. “We unswervingly uphold rigorous discipline, nurture a sound and upright political climate to edify the public and bolster high-quality development. We must never take the people’s apples.”
China
China taps digital technology to advance integrity education
By Yang Wenming, Bai Guangdi, Su Bin, People’s Daily
Integrity has long been a cornerstone of Chinese cultural tradition. Throughout the more than 100-year history of the Communist Party of China (CPC), a commitment to integrity, public service, and serving the people has remained a defining part of its endeavors.
In recent years, local governments across China have increasingly turned to digital tools to strengthen integrity education. By consolidating resources and designing interactive online platforms, authorities are helping anti-corruption and ethical governance principles take deeper root among both civil servants and the general public.
Not long ago, Chen Zhaomeng, an official with the Zhujie subdistrict in Qilin district, Qujing, southwest China’s Yunnan province, needed to organize an integrity education activity for her Party branch. Using a mobile mini-program called “Map of Integrity in Yunnan,” she quickly found a suitable venue in Shizong county, about a 90-minute drive from Qilin district, and booked a visit to the former residence of Dou Xu in Zhuji township.
The former residence of Dou Xu is a traditional courtyard compound. Dou Xu was an upright and incorruptible official during the Qing Dynasty (1644-1911) who strictly enforced the law and handled cases impartially. Stories of his integrity have been passed down among local people.
Guided by an exhibition docent, the group toured the former residence in an orderly manner and learned about the virtues of Dou Xu’s good family tradition.
To facilitate integrity education at the grassroots level, the Yunnan provincial commission for discipline inspection launched the “Map of Integrity in Yunnan” mini-program. It provides detailed information on venues and facilities dedicated to integrity culture across the province.
Historical stories associated with each integrity education base are brought to life through short videos, while map navigation, recommended routes, opening hours, and reservation information are also provided.
Yunnan’s initiative reflects a broader national trend. Similar digital platforms have been rolled out in Lianyungang, Jiangsu province, and Guiyang, Guizhou province.
In Lianyungang, municipal disciplinary authorities have linked 16 distinct integrity education sites into a unified network, establishing a citywide “Integrity and Clean Governance Map.”
Meanwhile, Guiyang’s disciplinary commission has catalogued local heritage sites related to ethical governance and launched the “Guiyang Integrity Map” via the city’s official website and WeChat channel. The platform organizes provincial, municipal, county, and community-level education centers into a single searchable interface, offering practical guides and essential visiting information for officials and citizens alike.
Launching these digital platforms is only the beginning; their real value lies in how they are activated. The Lianyungang municipal commission for discipline inspection has worked with local publicity authorities, universities and other institutions to transform these mapped sites into key hubs for civil servant training, thematic party-building activities, and cautionary case studies.
At the same time, the city has expanded the reach and influence of the map by producing a series of short videos, developing online virtual reality exhibition halls and designing high-quality learning routes. Since its launch, the platform has attracted more than 200,000 Party members, officials and members of the public for visits and study.
China
China firm advocate of, doer in reforming, improving global governance
By He Yin, People’s Daily
On Oct. 23, Chinese President Xi Jinping sent a letter to the 2026 Global Governance Forum (Xiong’an), further elaborating on the importance of reforming and improving the global governance system and charting the course for advancing the implementation of the Global Governance Initiative (GGI). The letter demonstrated China’s sense of responsibility and its willingness to work with other countries to build a more just and equitable world.
Xi put forward the GGI in September 2025, a much-needed initiative that offers solutions to bridge the governance deficit and build a better future. In just over a year, the initiative has gained the support of more than 160 countries and international organizations. Over 60 countries have joined the Group of Friends of Global Governance. Its core elements have been incorporated into the documents of multilateral fora such as the G20, the Shanghai Cooperation Organization, and BRICS.
The past year has underscored the great contemporary value of the GGI, with its appeal and influence continuing to grow. The initiative has become an important public good warmly embraced by the international community.
The international community regards the GGI as a stalwart for multilateralism as the international landscape is undergoing a profound shift, and a safeguard for fairness and justice as the law of the jungle makes a comeback. To many in the world, the GGI provides a clear pathway to shared development and security and much-needed certainty for a turbulent world.
Beyond championing the GGI, China has taken decisive steps to translate its vision into practice. Since its launch, China has advanced multiple proposals to promote peace and stability in conflict zones such as the Middle East, voluntarily waived demands for additional special and differential treatment in World Trade Organization negotiations, and introduced new forms of international public goods, such as the International Organization for Mediation and the World Artificial Intelligence Cooperation Organization.
The GGI is widely regarded by people of foresight around the world as a remedy for and improvement on the existing international system, and a crystallization of Chinese wisdom that will shape a fairer, more inclusive, and more sustainable world.
The 2026 Global Governance Forum (Xiong’an), held in Xiong’an New Area in north China’s Hebei province, marked a major step by China in working with other countries around the world to put the GGI into practice.
Under the theme “Rebuilding Confidence and Cooperation: Reforming and Improving Global Governance in a Transforming World,” participants exchanged ideas and learned from one another. Their discussions addressed both the need to uphold the international system with the United Nations at its core and the governance of emerging fields such as artificial intelligence, cyberspace, and outer space.
Through dialogue and communication, they sought to build consensus and develop joint solutions, contributing to international efforts to tackle governance challenges and reform and improve global governance.
More than a policy dialogue, the forum offers the international community a tangible look at China’s governance philosophy. In just nine years, Xiong’an New Area has transformed from a planned development zone into a dynamic innovation hub and a showcase of high-quality urban development. By engaging with this “city of the future,” attendees witnessed firsthand how China’s governance model — centered on people-first development, ecological sustainability, technological innovation, and long-term planning — has translated into measurable progress.
This year marks the 55th anniversary of the restoration of the People’s Republic of China’s lawful seat in the United Nations. As a founding member of the United Nations and a permanent member of its Security Council, China has consistently upheld and practiced multilateralism.
At the forum, China announced eight practical actions to advance global governance. These include ensuring the success of the Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Meeting in November, continuing to engage deeply in United Nations reform and encouraging the Group of Friends of Global Governance to play a bigger role.
The country called on all parties to uphold the central role of the United Nations, practice the values of fairness and justice, bolster the strength of the Global South for better global governance, advance in the direction of openness and development, and improve the rules of governance in emerging fields.
These measures clearly demonstrate China’s firm resolve to work with other countries to steer global governance toward greater fairness and equity. They also provide a roadmap for joint efforts to implement the GGI in the next stage.
An African media outlet commented that the forum’s significance lies in its efforts to foster a more open, balanced and constructive dialogue on the future of international relations.
Global governance serves the common interests of all nations, and requires the collective effort of the international community. China stands ready to work with all parties to uphold a vision of global governance featuring extensive consultation and joint contribution for shared benefit, build strength through confidence and overcome challenges through cooperation.
Together, the international community can advance the implementation of the GGI, bring greater certainty and positive energy to a world fraught with change and turbulence, and work hand in hand toward a community with a shared future for humanity.
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