China's draft postal law angers private firms
Local and foreign express delivery companies have denounced the latest draft of China’s Postal Law, saying it would create unfair competition, violate trade agreements and destroy non-state businesses employing hundreds of thousands of people.
A meeting last week between industry representatives and officials from China’s State Council, or cabinet, and other departments failed to ease fears over the likely impact of the long-delayed law, express delivery company executives said.
They say one clause of the draft would give a unit of state-owned China Post a total monopoly over deliveries of parcels weighing less than 150g, which account for more than 90 per cent of the intra-city business of private delivery companies. The monopoly on small package deliveries would not have any immediate direct affect on international companies, but they would be hit by other provisions favouring China Post, tightening licensing controls and compulsory payments to subsidise universal postal services.
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