China throws up barrier to int’l express carriers

A new Chinese postal law may make life difficult for international express carriers operating in China to expandtheir business.

The Chinese government has enacted a new postal law on 24 April that bars foreign companies from delivering domestic express letters.

Without access to this segment it may be difficult to operate international express business in the country according to the Brussels-based Global Express Association, who called the move by China “protectionist”.

The market for express delivery of commercial documents is surging in China as domestic companies prefer express delivery over the Internet or fax for documents like contracts or proposals.

“By placing transport of such documents off limits to foreign-owned express delivery companies the new postal law denies them an important source of revenue and threatens their viability in the wider express delivery services market,” the GEA said in a statement.

The GEA represents UPS, FedEx, TNT and DHL.