China Post tries to squeeze out small operators
A million people in the express service industry could be out of work in China if a draft proposal revising the Postal Law is passed by the National People’s Congress. It will give China Post’s express arm EMS (Express Mail Service) the sole authority to handle documents weighing under 150 grams, effectively forcing most domestic express companies to shut down as 90 percent of their business is derived from handling such small items.
Domestic freight forwarders as well as foreign express operators expressed their discontent with the draft during a meeting last month with Dong Chaojie, deputy division director of the Legislative Affairs Office (LAO) of the State Council and Da Wa, director general of the Department of Industrial Administration of the State Post Bureau. Attending the meeting were executives of 16 domestic companies as well as representatives from the big four foreign operators – DHL, TNT, FedEx and UPS.
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