Foreign express giants speed up expansion in China
International express magnates such as UPS, TNT, DHL and FedEx are speeding up to further explore the Chinese market as China opens up its domestic express business on December 18 of 2005.
United Parcel Service Inc. (UPS) currently runs six cargo flights from the United States to China a week. If winning approval from the US administration, UPS will be in a position to fly six new flights to Shanghai immediately and six new ones to Guangzhou next year. The new flights will allow UPS to connect Shanghai with Japan for the first time with non-stop service, and the 2005 flights will allow UPS to offer non-stop service from the U.S. to Guangzhou for the first time. UPS entered the Chinese market in 1988 in partnership with China’s Sinotrans and then began direct air service in 2001.Meanwhile, TNT UK, the European market leader in global express and international mail services and entering Chinese market early in 1985, is set to build its headquarters in Shanghai on September 10. FedEx has promoted its GPRS in Chinese market. DHL will make an additional investment in China and increase air express load by 60% from Shanghai to Hong Kong.
Experts say that foreign investors serious rival will result in great pressure for China Post EMS.
