Any Asia/Pacific flyers have insights on this?

FedEx, DHL banned in China


FedEx, DHL banned in China


The revised law was passed by the National's People's Congress on Friday despite opposition from express delivery giants including DHL, FedEx, TNT and UPS, the China Daily reported.

BEIJING - CHINA'S parliament has revised the nation's postal law in a move that will ban foreign delivery companies from handling domestic express mail, state press reported on Saturday.

The revised law was passed by the National's People's Congress on Friday despite opposition from express delivery giants including DHL, FedEx, TNT and UPS, the China Daily reported.

The newly amended law that goes into effect on October 1 bans foreign companies from delivering express letters within China, the newspaper said.

But foreign delivery companies with operations in China will be permitted to deliver express packages domestically, as well as express letters internationally, it said.

Legislators insisted the new law complied with China's World Trade Organisation committments, it said.

The Conference of Asia Pacific Express Carriers, which represents the four global giants and lobbied against the amendment, called for an 'open and level playing field' in the sector.

The provision would 'erode the competitiveness of foreign invested firms against their domestic counterparts in the wider express market,' the China Daily quoted a CAPEC statement as saying.

'CAPEC regrets that the newly enacted China Postal Law excludes foreign business from entering a segment of the domestic market,' it added.

Express delievery is big business in China, accounting for about 43 percent of 96 billion yuan (14 billion dollars) in revenue in the nation's postal system last year, the report said.

 

Link to AP article on same story:Group says China's new postal law restricts market: Associated Press Business News: FDX - MSN Money

Not really sure of the meaning implied by this line in your story:"But foreign delivery companies with operations in China will be permitted to deliver express packages domestically, as well as express letters internationally, it said."

Perhaps express packages are OK, but letters aren't in their domestic market?
What defines foreign companies with operations in China?

The classic commie tactic of renegotiation after a contract has been signed?

 

Does that mean UPS management are commies ?



Sorry I couldn't resist.

 

There is a reason we call ATL the Triad.

 

An offer or pressure to renegotiate is different than a unilateral cancellation, that would make them like commies.

 

I don't know, blatantly ignoring and/or violating a contract certainly seems like unilateral cancellation to me.

But I digress again !



I do wonder what effect this will have on ops in China ?

 

I read it as they are banning foreign carriers from carrying domestic postal express mail, not banning foreign carriers' own 'expess' products.

It is like the US prohibiting Yangtze River Express from getting a domestic US postal contract. Hopefully this is no big deal.

 

Friday, April 24, 2009, 3:54pm CDT

FedEx to ink deal with Chinese businesses --Memphis Business Journal

FedEx Corp. will be one of several U.S. and Chinese companies that will sign contracts Monday worth billions of dollars.

According to the U.S. Chamber of Commerce, FedEx will attend a signing ceremony following the U.S. China Trade and Investment Cooperation Forum.

There, Memphis-based FedEx and other companies like Dell Inc. will ink several deals with Chinese businesses. Details about those contracts were not divulged.

 

That will change

 

Look's like that ban did'nt last too long did it ?

Fred