Dragonair to offer express parcel service from July 28
Hong Kong Dragon Airlines said it will offer an express parcel service from July 28 to meet the needs of customers doing business in China.
Read MoreTag: China
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.
Read MoreChina Postal monopoly under siege
Most people are not in favour of the State Postal Bureau’s monopoly of the nation’s postal system, according to a survey report issued by the Economic Monitory Centre with the National Bureau of Statistics last week. The survey also found that most people (64.3 per cent) were satisfied with the Express Mail Service (EMS) offered by the bureau.
Read MoreGov. Sides with Carriers Against China Post
The struggle within China’s government over the fate of foreign express delivery companies is spilling into public view, as the foreign trade ministry turns to the media to argue its case against the postal service. China Post believes that it has the exclusive right to deliver letters and parcels in China, and has tried to enforce that right by disrupting the operations of its foreign and local competitors – particularly in the lucrative express delivery field
Read MoreDubious courier moves
China’s postal monopoly
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