FedEx to Face China Anti-Dumping Investigation?
FedEx’ Express division in China has cut its prices by up to 40 per cent in recent months, a move that has resulted in a growing market share and a monthly loss of RMB 50m (USD 7.30 m) , The Economic Observer reports. Chinese competitors, who see their existence in danger, are now reportedly urging the government to start an anti-dumping investigation.
FedEx has reduced its prices for shipments three times in 12 months, with the result that since its last cut in June, its market share has risen and volume has quadrupled, The Economic Observer writes.
China’s Ministry of Commerce and the China Federation of Logistics and Purchasing have been urged by Chinese express companies to support a proposal that the government launch an anti-dumping investigation into FedEx’ pricing strategy. China Post’s EMS and S.F. Express, the country’s largest private express delivery, say these price cuts are putting a lot of pressure on their companies, could eliminate the existence of small and middle sized express firms and could fundamentally change China’s express market in the next five years.
