China Post's market share to erode further amid foreign rivalry
China’s State Post Bureau (China Post) will maintain its dominance in the domestic courier service sector in the coming years, but will see its market share in international express mail forwarding further eroded by increased foreign rivalry.
To protect the local industry, the Chinese government bans foreign forwarding firms from the domestic express mail delivery sector and only allows them to offer international courier service through joint ventures with local partners, Zhang Guotian, an analyst with China Merchants Securities said.
However, restrictions have failed to curb foreign firms rapidly expanding in the country, Zhang said.
Major global players, such as DHL Worldwide Express, FedEx Corp, United Parcel Service Inc and TNT Express, have grabbed a 62% combined market share in the international forwarding service sector over the past 10 years.
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