DHL Worldwide Express, a unit of Deutsche Post, said it plans to inject a further 15 mln usd in China to build more logistics centers.
The paper quoted Mark Ting, deputy managing director of DHL’s joint venture DHL-Sinotrans, as saying the new funds will raise the company’s total investment in China to 215 mln usd.
Read MoreA clash between DHL and China’s postal service over the German group’s entry into the domestic express delivery market has highlighted the tensions between foreign companies and the Chinese government over regulation of the country’s parcel delivery market.
Last month DHL, a unit of Deutsche Post, announced the launch of a domestic express delivery service, the first operated by a foreign company in China.
Read MoreNo sooner had DHL declared it the first foreign firm to carry out express delivery service in China and stirred up media fever when a spokesperson from the China State Post Bureau claimed that so far, it had never approved any foreign- funded company to set foot in the field. The bureau hasn’t provided DHL with the license necessary for carrying out express business in China, nor did it approve any other foreign-funded firm, said the spokesman. China did not promise to open its postal market in its commitment to the WTO. As to whether DHL has violated Chinese laws and regulations by founding a place in the field, the bureau said it would keep a close eye on DHL’s business in China.
Read MoreDeutsche Post AG unit DHL’s newly-launched domestic express mail delivery service in China is perfectly legal, as the country’s postal regulations do not specifically prevent foreign firms from engaging in the business, a DHL official told AFX-Asia in response to recent local media criticism of its entrance into the local express mail delivery service sector. DHL set up a unit in Shanghai on Monday to provide domestic express mail services nationwide, effectively becoming the first foreign company to break into the sector, which was previously reserved for local firms. The move aroused criticism from local media, and several mainstream newspapers branded DHL as ‘an irregular player’, as none of the foreign freight forwarders have been officially allowed into the sector so far. DHL, on the other hand, defended its move without hesitation, saying no law forbids it to enter the market.
Read MoreDHL is to expand its operations in China, including the launch of the mainland’s first domestic express service operated by an international provider.
DHL said the launch of China Domestic, a door-to-door delivery service focused on parcels and freight, marked a “significant milestone” for the group and its partnership with Sinotrans, China’s leading transport and logistics operator. DHL-Sinotrans has nearly 40 per cent of China’s express delivery market, the company said.
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