Nippon Express viewing China as core market

Japanese logistics company Nippon Express Holdings Inc is ramping up efforts to bolster digital transformation in logistics, expand automation-based operations and drive the development of green logistics in China, said a senior executive.

"The Chinese market is one of the most critical pillars of our global strategy — an indispensable core market without which no discussion of the global supply chain would be complete," Sumitoshi Matsuo, managing executive officer and regional general manager of East Asia region, Nippon Express, said in a recent interview with China Daily.

Over the past 44 years since its entry into the Chinese mainland, the company has continuously supported not only Japanese companies, but also Chinese enterprises and global corporations in their international trade activities. In recent years, it has been providing strong support for the overseas market expansion of Chinese companies.

Emphasizing that the Chinese market occupies a highly strategic position in its global operations, the company said it is focusing on five key industries — electronics, automotive, lifestyle, pharmaceuticals and semiconductors — and is offering diverse logistics solutions across various fields.

For instance, in the rapidly growing e-commerce sector, it has developed AI-powered digital Customs clearance platforms and end-to-end visibility systems for cross-border e-commerce, enabling consumer goods to reach the market more swiftly.

"We aim to strengthen not only our forwarding business in air and sea transport, but also expand our logistics operations within China," Matsuo said.

From January, a new East Asia regional headquarters will begin operations in Shanghai, overseeing business activities across East Asia. The headquarters will centralize regional management, strengthen planning and development for both regional and global business expansion, and further enhance corporate governance.

Nippon Express is also introducing electric vehicles and hydrogen-powered trucks and expanding reusable packaging solutions to support the development of green logistics, while deepening collaboration with major Chinese e-commerce platforms and logistics companies.

Noting that the Chinese economy is undergoing a transition toward quality-driven growth, Matsuo said the company will restructure its network to meet the expansion of consumption and industrial agglomeration in inland regions, and actively expand green logistics solutions aligned with China's dual-carbon goals. It will also develop logistics networks for high-quality consumer goods as China's middle-income group continues to expand.

When asked about AI technology's application in various industries around the world, Matsuo said AI is already delivering significant value across the company's operations by enhancing the accuracy of demand forecasting, optimizing delivery routes in real time and applying automated warehouse management systems.

"As for China's technological innovation capacity, we recognize its outstanding strength in both implementation speed and on-the-ground adaptability, which far surpass that of other regions," he said.

The government-led research and development investment, coupled with a vibrant startup ecosystem, continues to drive sustainable innovation in China, he added.

Matsuo noted that China has evolved from being the world's factory to becoming the global hub of smart supply chains. "Based on this recognition, we position ourselves not merely as a participant, but as a co-creator of value in China's new and more open economic structure," he said.

"We focus on delivering more effective solutions to strengthen our collaboration with rapidly growing Chinese enterprises. By helping local partners enhance supply chain efficiency and competitiveness, and providing digital platforms that integrate our international logistics expertise, we actively support their global expansion."

The company is also dedicated to cultivating professionals with multilingual capabilities and advanced logistics and information technology literacy, strengthening local management teams, and contributing to China's sustainable and inclusive growth.

Zhu Keli, founding director of the China Institute of New Economy, said the country's intensified efforts to further reform the institutions and mechanisms for promoting foreign investment have demonstrated its firm determination to foster a world-class, market-oriented business environment governed by a sound legal framework.

He added that Chinese enterprises could also learn advanced technologies and management experience from their foreign counterparts and improve innovation capacity and competitiveness.