China formally established a new state-owned logistics group on Monday, state broadcaster CCTV reported on, to strengthen domestic and global supply chains amid widespread disruptions caused by the pandemic.
China Logistics Group aimed to become a “global supply chain organizer” by developing international trade links and freight services, as well as cross-border e-commerce, CCTV said.
The new company was formed through a merger of China Railway Materials 000927.SZ, China National Materials Storage and Transportation Group, Huamao International Freight Limited Company Shenzhen Branch, China Logistics, and China National Packaging Corporation, CCTV said.
The merger Monday comes at a time when the pandemic continues to disrupt global supply chains, especially in Chinese ports, where even one positive COVID-19 case can result in operations being suspended.
The newly-formed group will also include as strategic investors the parent firms of China Eastern Airlines 600115.SS, COSCO Shipping 601919.SS, and China Merchants Group CNMGP.UL, who will respectively hold share percentages of 10%, 7.3%, and 4.9%.