Low Barriers: Road freight requires minimal infrastructure – a storefront and trucks suffice for market entry. Over 7.5 million road transport companies now compete for shrinking margins.
Capital Influx: JD Logistics, SF Express, and Tencent have expanded into cross-sector services like LTL shipping, intensifying market saturation.
Policy Incentives: Regional governments’ duplicated logistics park subsidies create artificial market demand.
Speculative Expansion: 300,000 new truck drivers annually join the workforce through easy auto loans, despite declining cargo volumes.
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