China Launches State-Owned Logistics Group in Bid to Strengthen Global Supply China Dominance: Expert

A photo taken on August 20, 2012 shows a general view of a rare earth refinery north of the inner Mongolian city of Baotou. On the edge of the Chinese city of Baotou, a 10-square-kilometre lake is blackened by pollution from factories processing rare earths, elements essential for the production of mobile phones and computers. Ed Jones/AFP via Getty Images

China is setting up a large and wholly controlled global logistics group. This new layout would help the ruling regime enhance its dominance in the global supply chain and maintain a monopoly position inside and outside of China, an expert said.

According to mouthpiece Xinhua media, newly established on Dec.6, China Logistics Group is a central enterprise under the direct supervision of the State-owned Assets Supervision and Administration Commission of the State Council, based on the integration of the former Railway Materials Group and Chengtong Group. The new group’s investors are comprised of China’s Eastern Airlines Group, COSCO Shipping Corp., and Merchants Group.