Unit 1

　　Introduction to Logistics

　　1 Since 1994, China has had consistent attention from MNCs (MultinationalCorporations). One reason for this is the attraction of the low cost of manufacturing and vastdomestic market potential. With Chinas accession into the WTO comes even greater marketaccess. Trade and investments are expected to surge rapidly. Second, with a burgeoningmiddle class, more people will have greater purchasing access to both domestic and foreigngoods. Many MNCs are keen to invest, make and deliver through China. China hasovertaken the USA as the most attractive location for FDI (Foreign Direct Investment).Statistically, this translates to a total of 389,104 projects approved to receive foreign capital,with total FDI realized amounting to RMB 3,076 billion from 1983 to 2001.

　　2 With this, comes the desire by MNCs and logistics service providers (LSPs) to bekept well informed of the state of logistics infrastructure and to have a clear understanding ofthe on-going logistics development in China. This presents immense challenges to thelogistics industry as it strains to meet the demands of a growing market. Nevertheless, theopportunities for logistics are tremendous as China is arguably the largest single distributionmarket globally.