The China Federation of Logistics and Purchasing has recently released data showing that the industry is facing huge challenges; 40% of logistics firms have seen profits decline over the plast twelve months, due to regional fragmentation and inefficiencies in the industry. Government initiatives intend to reduce logistics costs as a percentage of GDP, streamline administrative procedures and encourage the development of globally competitive, international logistics firms. This will present both challenges and opportunities to foreign-invested companies, particularly in the inland cities of Kunming, Urumqi, Chengdu and Chongqing.