China started its reform and open policy in 1978. Since then, the country has been transforming itself from a centrally planned economy to a market economy. The concept of ‘logistics’ was imported into China in the 1990s. Since then, logistics in China has witnessed a huge growth along with its fast growing economy. Logistics in China has accelerated since China’s entry to the WTO in November 2001. Prior to China’s entry, foreign logistics participations were regulated in most logistics sectors. Chinese logistics industry had been divided into sub-sectors where logistics activities were strictly regulated. After entry to the WTO, China has committed to a deadline to open its logistics markets. The priority accorded to industry stunted services development-particularly in productivity terms-while the emphasis on physical investment constrained investment in human capital [1].