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The Theory and Practice of Logistics Infrastructure Capability: Evidence from China Changbing Jiang1, Yang Peng 2 1College of Computer and Information Management, ZheJiang GongShang University, Hangzhou, ZheJiang, 430089, China 2 College of Computer and Information Management, Wuhan University, Wuhan, Hubei,430079, China johncabin@mail.zjgsu.edu.cn, pengyang@mail.zjgsu.edu.cn Abstract Logistic infrastructure (LI) is an important area of urban competition capability. The connotation of Logistics Infrastructure Capability (LIC) is analyzed in this paper. Compared with the extensive research on LIC in developed world, empirical work is still rare in developing world. In this paper the theory of LIC is firstly overviewed. Then a new evaluation index system for LIC evaluation is set up which contains factors that reflect the economic development level, transportation accessibility, turnover volume of freight traffic and conveyance availability. Secondly, an empirical study is carried out by using hierarchy cluster analysis method to classify LIC into 3 clusters for 31 major provinces or regions in Peoples Republic of China. Thirdly, according to the characteristics of the 3 clusters, suggestions are proposed for improving their LIC. Finally, after comparing different LIC of 31 major provinces or regions in Peoples Republic of China, this paper focuses on that different logistics infrastructure including Hub, Central Distribution Center Cross Docking Center, Regional Distribution Center or Distribution Center should be build reasonably in order to meet the customer’s requirement in the 3 different cluster regions. 1. Introduction With the accession into the WTO, modern logistic in China possess the great development opportunity [1]. Shanghai, Hong Kong and Guangzhou, some of the major gates to the outside world in China, plan to build themselves into major International Logistics Center in 5 to 10 years [2]. Therefor the research of logistics infrastructure (LI) has re