China shelves postal curbs

Integrators have welcomed China Post’s postponement until 15 June of planned curbs on international express mail operations.
The administration had threatened from today to extend its monopoly to all items up to 500g and to prohibit pricing below its own levels. Deliveries by third parties to government departments would be banned.

A UPS spokesman said postponement was “a step in the right direction and shows the Chinese are willing to work with us”. With the express industry a major supporter of China’s entry to the World Trade Organisation, the proposals violated WTO principles and would increase costs to Chinese businesses, he claimed.

UPS won rights to fly direct to China last year and now operates six flights from the US to Shanghai. The spokesman said a restriction on deliveries was “not Armageddon, but it’s a fundamental issue of trade policy”.