Still no resolution to Chinese postal dispute
Chinese postal authorities and international express carriers have not yet settled a dispute over plans by the Chinese to regulate foreign companies and claim a monopoly over the small package business. (5/17/2002)
“Press reports that this issue has been resolved are premature,” said John Flick, a spokesman for United Parcel Service. “We are still very much opposed to regulations that have been set up by the China Post.”
Flick expressed hope that Chinese agencies, including the state postal bureau and the Ministry of Foreign Trade and Economic Cooperation, can reach a consensus on changing the proposals. The new regulations, requiring all international express companies and foreign freight forwarders to register with the postal service, are scheduled to take effect June 15. The regulations would also give the state agency a monopoly over packages weighing up to 500 grams, or about 17 ounces.
The rules were originally supposed to take effect May 6 but were postponed in late April shortly before the visit of China’s vice president, Hu Jintao, to the United States.
The Chinese forwarders staunchly oppose the regulations since many of them have partnerships with foreign forwarders and express companies. The Council of Asia Pacific Express Companies, representing such carriers as UPS, FedEx Corp., DHL Worldwide and TNT, is working with the Chinese to revoke the regulations.
The U.S.-China Business Council has also expressed its opposition to the new rules, saying they are not compatible with China’s commitment to the World Trade Organization to open its economy. “We are hopeful that fundamental issues of principle are not lost in the shuffle as various parties struggle to manage this difficulty,” said Robert A. Kapp, president of the council. Fred Smith, chairman and chief executive of FedEx Corp., is chairman of the Washington-based council.
Senior Chinese government officials “at the highest level” are aware of the dispute’s potential ramifications, according to Kapp.
