Kenan-Tsinghua Center For Logistics And Economic Development

New Center brings together premier institutions in two of the most important global markets

Beijing - The Kenan Institute's Center for Logistics and Digital Strategy (CLDS) and Tsinghua University have recently established the Kenan-Tsinghua Center For Logistics And Economic Development, a joint research center in logistics. Tsinghua University is considered the MIT of China and the partnership positions both organizations as leaders in logistics for emerging global markets.

The joint Center will focus on logistics and global supply-chain management research that enhances trade between the United States and China, supports economic development and addresses issues such as offshore outsourcing.

The establishment of the Center offers a vehicle for CLDS clients to meet the challenge of China’s rise to prominence in global markets. China is now the fastest growing export market for the United States and North Carolina. The new Center will serve as a locus of research and educational activities that enhance mutually beneficial economic development through trade. To enhance these activities, the Center is developing the tools and techniques that reduce the costs of moving goods and materials between China and its trading partners.

Throughout the world, logistics has become an increasingly important value-adding process. In developed countries, logistics costs average approximately 10-12 percent of the world’s gross domestic product. In China, logistics costs are more than 20 percent of the gross domestic product—a tremendous opportunity for improvement and cost savings. Reductions in logistics costs will not only help Chinese companies, but also American companies seeking to capture new opportunities in China and to improve their competitiveness in both the Chinese and global markets.

In today’s global market, the quality of logistics practices and infrastructures will ultimately determine economic success. The Center fulfills a critical need for a collaborative research environment in China whose research activities can help global industry capture the growing market represented by China. Of particular interest is the development of logistical networks and infrastructures that will enable US and Chinese industry to be more efficient in global markets.