Fedex says too early to take China Post row to WTO
Fedex Corp said that it is still too early for a complaint to be lodged with the World Trade Organization in the ongoing row between foreign parcel deliverers and China Post.
Asia-Pacific president David Cunningham said that the company is working to influence the government as it drafts new legislation governing the postal industry – and the controversial role played by China Post.
‘It needs to play out in China before proceeding to a WTO-type environment,’ he said.
The US filed the first complaint WTO complaint against China nearly two weeks ago over the mainland’s tax treatment of domestic semiconductor manufacturers.
Cunningham earlier told reporters, at the launch of a child road safety program at a local school here, that legislation governing the postal service would need to be passed before there was a resolution of a long-running dispute between China Post and the foreign players currently operating on the mainland.
‘It’s still early in the process. You have to have the legislation passed and enacted before you can take it beyond,’ he said.
The upcoming postal legislation marks the latest twist in an ongoing dispute between the Chinese government and foreign express companies over the extent of market access and the dual role of the postal service as both competitor and regulator.
The legislation is understood to impose a tax on foreign players to build up China’s postal system, and specifically China Post and EMS, its parcel delivery business.
Foreign express delivery firms also complain about being barred from working with certain packages. But it is the role of China Post itself which lies at the heart of the dispute.
‘The express industry has issues with this legislation on several different fronts, particularly that in this case a competitor to the express industry in the form of China Post and EMS is acting as both regulator in the industry and competitor in it,’ he said.
‘It’s all just about a level playing field, it’s about the greater good versus protectionism.’
Cunningham could not provide further details on when the legislation will be issued, but said that the company continues to work through the Conference of Asia Pacific Express Carriers, a lobbying group formed last year with global rivals UPS, DHL and TNT to push its case with the Chinese government.
Fedex, whose China revenues rose by more than 40 pct in the most recent quarter over the same period last year, set up a headquarters in Shanghai last month to focus more on the mainland market.
Cunningham said that the company, which now serves 224 cities around the country, is planning to extend its network to another 100 cities within the next five years.
