When will the Chinese Postal dispute reach resolution point?
Although the parties involved in the China Postal dispute have agreed to set June 15 as the date for settlement, it appears that there is still no solution in sight. (6/5/2002)
The Council of Asia Pacific Express Companies (CAPEC), whose members include UPS, DHL, FedEx and TNT, together with their joint venture partners and agents say they remain concerned about the proposal to give China Post administrative authority over international express companies and international freight forwarding through an entrustment approval procedure.
The procedure effectively gives China Post and its express arm, EMS a new monopoly over all documents that weigh 500 grams or less.
CAPEC points out that China Post already has a monopoly over all private domestic and international letters and now wishes to extend this to business documents and similar items, by imposing onerous new requirements and restrictions.
“These moves will damage the express industry in China,” CAPEC said.
According to China Communications News/State Ministry of Transportation Industry, the express market in China is valued at US$1.8 Billion a year, not to mention the many thousands of employees, benefits in skill and technology transfers, education and community support.
In partnership with local partners and operators, Chinese exporters and foreign investors, the express companies are a key link to China’s global competitive position, through the provision of time definite air transportation services that reach across the globe.
CAPEC says if the measures are implemented, China’s importers, exporters, high-tech and value-added manufacturers and service industries, all of whom rely on time critical delivery and custodial control of their business documents will be placed at a severe competitive disadvantage internationally.
The unilateral implementation of these new measures, the lack of consultation and transparency and the willingness to depart from global practices convey a disturbing message about the fairness of China’s regulatory environment.
With China’s entry into WTO and the great potential in the market, CAPEC believes all the express service providers including China Post (EMS), can share in the rewards and benefits this will bring and most importantly, so will Chinese exporters and customers.
CAPEC is hopeful that representations by the US, EU and Japanese Governments and the discussions taking place between MOFTEC and the industry will be effective in resolving this issue to the benefit of businesses, including the growing express industry in China.
The key to China’s continued economic success lies in continually improving services, reliability and speed to market with the express companies playing an important role in this, CAPEC says.
