Morgan Stanley estimates China's annual spending on logistics is $200 billion20 percent of GDP and double the percentage dedicated to logistics in the United States. But the barriers to successful logistics operations are daunting. Corruption is rampant and planning is poor. Four separate government bodies regulate air, rail, road and river transport. There's no single nationwide trucking firm. In fact, the average Chinese trucking company owns less than two vehicles. By train, meanwhile, delays are widespread because commercial cargo takes a back seat to key bulk shipments like coal and grain, not to mention passengers and the military. With only three exceptions, foreign logistics firms cannot operate outside the country's free-trade zones unless they form joint ventures. In addition, perhaps the biggest single handicap is provincial protectionism. Local companies often have a stranglehold on rights to deliver within a city. And truckers outside their home provinces are regularly shaken down for tolls, official and otherwise, causing more delays and cost overruns. (Source: Far Eastern Economic Review)