China Post is struggling to become profitable
The State Postal Bureau (China Post) is struggling to become profitable as it adapts to the market economy. Once the most profitable government arm, the bureau has suffered huge losses in recent years as people increasingly turn to the telephone and e-mail for communication instead of writing letters.
Starting next year, the bureau will have to survive without any government subsidies or assistance from associated companies in the telecoms sector. The bureau aims to become profitable over the coming year. The EMS (express mail service) business is the major revenue source of China Post, but is under severe competition from international and domestic delivery companies.
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