THE State Council, China's Cabinet, yesterday said it will boost the development of the nation's distribution industry to establish a modern goods distribution system that is efficient, competitive and open.

The speeding up of the sector's development should be oriented toward providing greater convenience and boosting public consumption, as well as ensuring the quality of products and improving efficiency in the sector, said a statement released after an executive meeting of the Cabinet presided over by Premier Wen Jiabao.

The statement said the country will build major distribution networks, optimize the structure of the sector in urban regions and increase the number of service branches in rural areas so that farm produce and industrial goods can move smoothly between cities and the countryside.

The distribution industry includes multiple sub-sectors, such as wholesale, retail and logistics.

Innovation should be promoted in creating new mechanisms that can integrate the production and sale of farm produce, the statement said. The government will also support the construction and renovation of related infrastructure.

It added that the government will encourage private investment in distribution, as well as boost efforts to remove regional protectionism in the sector.

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