Chinese Vice-Premier Wu Bangguo urged governments at all levels to support logistics development with preferential policies on fund use and planning in a speech at an international convention on logistics development held in Beijing on November 25.

He noted that modern logistics, with advanced management style, will help generate high profit. He predicted that logistics will become a driving force for the economic development in China in the future.

He also urged the State Economic and Trade Commission (SETC) to join other departments in working out policies to promote the rapid development of the sector.

With the improvement of technology and strengthened internal management, there is a less possibility for industrial firms to further narrow down costs within the area of production, said Shi Wanpeng, Vice-Minister of the SETC. Shi added that potential exists outside the area of production, such as in purchasing, transport, and warehousing.

Shi admitted that China is still at the initial stage of modern logistics development, with outstanding problems in traditional ideas and extensive management expertise.

The two-day seminar was co-sponsored by the SETC and the World Bank, which attracted nearly 500 officials, entrepreneurs and experts from China and overseas. (xinhua)