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China's total logistics flow in 2007 grew 25.5 percent year-on-year to 74.8 trillion yuan ($10.27 trillion), according to the estimates of the China Federation of Logistics and Purchasing (CFLP).

China's demand for modern logistics continued to increase due to fast economic growth, with the logistics demand elastic coefficient (GDP to total logistics flow) in 2007 rising to 3.2 from 2.8 in 2006.

"Although the industry maintained stable development in 2007, competition from foreign peers will mount in 2008 and the domestic logistics sector will see increasing openness," said Lu Jiang, chairman of the CFLP at a forum on international logistics cooperation in Beijing Thursday.

Lu also pointed out challenges facing domestic logistics enterprises, including insufficient information technology support and unadvanced transportation methods.