Key Takeaways
- China’s logistics market is the world’s largest, worth over $400 billion and projected to reach roughly $647 billion by 2032, built on a mix of state-owned carriers, private express giants, and e-commerce-driven platforms.
- Global companies typically work with Chinese logistics providers through one of three channels: express and parcel delivery, ocean and air freight forwarding, or integrated e-commerce fulfillment.
- Choosing the right partner now depends as much on regulatory and data-compliance considerations, including China’s 2026 supply chain security rules, as on price and network coverage.
For most global manufacturers and retailers, China is not just a sourcing destination — it is the backbone of a logistics network that moves everything from raw materials to finished goods around the world. Behind that network sits a small group of dominant companies: state-owned shipping and freight giants, private express operators, and e-commerce-driven platforms that between them move billions of parcels and containers every year.
Understanding who these companies are, how they differ, and what role each plays is essential for any business relying on Chinese supply chains. This guide walks through the structure of China’s logistics industry, the major companies operating within it, and what global companies should weigh when choosing a logistics partner in the current regulatory environment.
China’s logistics market at a glance
China operates the largest logistics market in the world. The broader freight and logistics sector was valued at roughly $406 billion in 2024, and is projected to grow to $647 billion by 2032 at a compound annual rate of around 6%. The e-commerce logistics segment alone, fueled by China’s enormous online retail volume, is expected to grow from about $236 billion in 2026 to more than $400 billion by 2031.
This scale is supported by an extensive network of physical infrastructure: deep-water ports such as Ningbo-Zhoushan and Shanghai, an expanding high-speed rail freight network, and a dense web of regional distribution hubs built to serve both domestic e-commerce and export-oriented manufacturing. For most global companies, this means China’s logistics companies aren’t simply vendors — they are effectively an extension of the supply chain itself.
The main types of logistics providers
Global companies typically engage with Chinese logistics providers through one of three broad categories, each suited to a different part of the supply chain.
Express and parcel delivery companies, such as SF Express, ZTO Express, YTO Express, STO Express, and Yunda, handle domestic and cross-border parcel volumes, often specializing in last-mile delivery and e-commerce fulfillment. Together, SF Express, ZTO, and YTO account for roughly 55% of express delivery volume in China.
Freight forwarders and integrated logistics providers, including Sinotrans and COSCO Shipping Logistics, manage ocean and air freight, customs clearance, and multimodal transport for companies moving raw materials or finished goods at scale.
E-commerce-driven logistics platforms, most notably JD Logistics and Cainiao (Alibaba’s logistics arm), operate vertically integrated fulfillment networks built around warehousing, last-mile delivery, and real-time inventory visibility.
International logistics companies such as DHL, FedEx, UPS, and Kuehne+Nagel also maintain a significant presence in China, often through joint ventures or dedicated China operations, and are a common choice for multinational companies seeking a single global point of contact.
Key companies to know
SF Express is China’s largest integrated express delivery company, generating roughly RMB 134 billion ($18.7 billion) in revenue in the first half of 2024 alone. It has increasingly focused on premium, time-sensitive delivery services and cross-border logistics.
ZTO Express is one of the largest parcel delivery networks by volume, processing 9.8 billion parcels in the second quarter of 2025 and holding close to 23% of the express delivery market, supported by heavy investment in automated sorting infrastructure.
Sinotrans ranks among the largest freight forwarders globally and is a key partner for companies moving goods by sea and air, offering integrated logistics, warehousing, and customs services.
JD Logistics and Cainiao operate the backbone of China’s e-commerce delivery infrastructure. JD Logistics benefits from its ties to JD.com’s retail platform, giving it tightly integrated fulfillment and inventory data, while Cainiao coordinates a broader network of third-party carriers on behalf of Alibaba’s marketplaces.
COSCO Shipping Logistics, part of the COSCO Shipping Group, is a major player in ocean freight and multimodal logistics, particularly for companies with large-scale import and export requirements.
What to weigh when choosing a logistics partner
Selecting a Chinese logistics partner is no longer a decision based purely on network coverage and price. A number of additional factors now carry real weight.
Network coverage and reliability remain foundational — does the provider reach the ports, cities, or last-mile destinations your business needs, and can it maintain consistent service levels at scale?
Data security and regulatory compliance have become significantly more important. China’s Cybersecurity Law, Data Security Law, and Personal Information Protection Law all affect how supply chain and logistics data can be collected, stored, and transferred. The 2026 supply chain security regulations add a further layer, giving Chinese authorities broader powers to review activities connected to supply chain data and operations. A logistics partner’s data-handling practices are now a genuine compliance consideration, not just an operational one.
Customs and trade compliance capability matters more for companies moving goods across borders, particularly given the pace of regulatory change on both the Chinese and foreign sides of many trade relationships.
Contractual protections, including clear service-level agreements, liability terms, and data-handling clauses, are worth negotiating carefully rather than accepting a provider’s standard terms.
Practical steps for working with a partner
Once a logistics partner is selected, a few practical steps help companies manage the relationship well.
Bring legal, compliance, and operations teams into the same conversation early. Decisions about which data to share, how audits are conducted, and how contracts are structured increasingly touch all three areas at once.
Engage local advisors who understand both the commercial logistics landscape and the regulatory environment. Rules in this space continue to evolve, and local guidance can help companies stay ahead of changes rather than reacting to them.
Maintain clear documentation of contracts, data flows, and compliance measures, both to meet foreign due diligence requirements and to demonstrate good-faith compliance with Chinese regulations if questions ever arise.
Keep communication channels with logistics partners, and where relevant local authorities, open, so that operational or regulatory issues can be identified and addressed quickly.
Looking ahead, with MSA
China’s logistics sector will keep growing and consolidating around a smaller number of large, increasingly sophisticated providers. For global companies, the practical challenge is choosing a partner, or combination of partners, that matches their network needs while managing an evolving regulatory environment around data and supply chain security.
For advice on selecting and working with logistics partners in China, get in touch with our team at MSA Asia.