Express delivery sector opens up

%3CP%20align%3Dcenter%3E%3CIMG%20border%3D0%20src%3D%22/new_maoyi_en/cn/admin/news/NewsFile/-1/2014925102736438.jpg%22%20width%3D500%3E%3C/P%3E%0D%0A%3CP%20align%3Dcenter%3E%3CFONT%20face%3DVerdana%3EWorkers%20at%20a%20delivery%20service%20sort%20parcels%20in%20Hangzhou%2C%20Zhejiang%20province.%20China%20is%20set%20to%20further%20open%20its%20express%20delivery%20market%20to%20foreign%20companies.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%3CSTRONG%3EMore%20overseas%20companies%20can%20now%20participate%20in%20the%20domestic%20market%3C/STRONG%3E%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EConsumers%20will%20soon%20have%20a%20plethora%20of%20express%20delivery%20companies%20to%20choose%20from%20in%20China%20as%20the%20government%20has%20decided%20to%20open%20up%20the%20express%20delivery%20market%20to%20qualified%20foreign%20companies.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EThe%20decision%20to%20introduce%20more%20foreign%20investment%20in%20the%20sector%20was%20taken%20at%20a%20State%20Council%20executive%20meeting%20chaired%20by%20Premier%20Li%20Keqiang%20on%20Wednesday.%20The%20central%20government%20will%20create%20a%20business%20environment%20in%20which%20both%20domestic%20and%20foreign%20express%20companies%20can%20compete%20fairly%2C%20said%20a%20note%20released%20after%20the%20meeting.%20The%20enhanced%20competition%20will%20be%20an%20incentive%20for%20domestic%20companies%20to%20improve%20their%20operations%20and%20services%2C%20stimulate%20domestic%20demand%20and%20create%20more%20jobs%2C%20it%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ELeading%20overseas%20logistics%20companies%20have%20set%20their%20sights%20on%20the%20Chinese%20market%20as%20early%20as%202009%2C%20when%20the%20country%27s%20new%20Postal%20Law%20was%20implemented.%20United%20Parcel%20Service%20of%20America%20Inc%20has%20received%20licenses%20to%20operate%20express%20services%20in%2033%20Chinese%20cities%2C%20and%2019%20of%20these%20were%20granted%20this%20year.%20Apart%20from%20the%20two%20major%20hubs%20in%20Shanghai%20and%20Shenzhen%2C%20UPS%20also%20has%20about%20250%20operating%20facilities%20throughout%20China.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EUPS%20expressed%20confidence%20that%20the%20%22continuous%20market%20opening%20would%20facilitate%20greater%20opportunities%20for%20business%20growth%2C%20especially%20among%20small%20and%20medium-sized%20customer%20segments%2C%20as%20this%20growth%20is%20critical%20for%20the%20connectivity%20and%20competitiveness%20of%20the%20economy%22.%3CBR%3EFedEx%20Corp%20said%20that%20it%20has%20been%20working%20closely%20with%20the%20relevant%20authorities%20to%20obtain%20express%20delivery%20services%20permits%20ever%20since%20the%20new%20Postal%20Law%20came%20into%20effect.%20Regarding%20the%20further%20opening-up%20of%20the%20package%20express%20delivery%20market%2C%20FedEx%20said%20it%20would%20be%20operating%20domestic%20business%20as%20usual%20in%20China.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3ESarna%20Yeung%2C%20partner%20of%20industry%20consultancy%20Roland%20Berger%20Strategy%20Consultants%2C%20said%20local%20accessibility%20of%20suppliers%20would%20be%20the%20main%20growth%20driver%20and%20urged%20logistics%20companies%20to%20expand%20their%20domestic%20distribution%20networks%20in%20the%20respective%20countries%20to%20reach%20as%20many%20end-customers%20as%20possible.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3E%22Accordingly%2C%20they%20must%20invest%20in%20new%20distribution%20hubs%20and%20delivery%20fleets%20to%20secure%20a%20good%20share%20of%20the%20market%2C%22%20she%20said.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EHowever%2C%20private%20express%20companies%20still%20account%20for%20the%20lion%27s%20share%20of%20the%20market%20in%20China.%20According%20to%20a%20report%20released%20by%20Deloitte%20Touche%20Tohmatsu%20Ltd%20and%20the%20Development%20and%20Research%20Center%20of%20the%20State%20Post%20Bureau%2C%2078.9%20percent%20of%20market%20share%20is%20held%20by%20private%20companies%2C%2019.9%20by%20State-owned%20enterprises%20and%20the%20remaining%201.2%20percent%20by%20foreign%20ones.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EZhang%20Jianhua%2C%20a%20senior%20manager%20at%20the%20Shanghai%20branch%20of%20the%20Shenzhen-based%20express%20company%20SF%20Express%20Co%2C%20said%20his%20company%20would%20adopt%20a%20wait-and-see%20attitude%20toward%20the%20influence%20of%20the%20overseas%20companies%20on%20domestic%20ones.%3C/FONT%3E%3C/P%3E%0D%0A%3CP%3E%3CFONT%20face%3DVerdana%3EChu%20Xuejian%2C%20vice-chairman%20of%20the%20Shanghai%20Logistics%20Association%2C%20said%3A%20%22It%20is%20very%20likely%20that%20consumers%20will%20opt%20for%20Chinese%20companies%2C%20which%20charge%20less%2C%20when%20they%20want%20to%20deliver%20less%20important%20shipments%20but%20opt%20for%20foreign%20ones%2C%20which%20charge%20more%20bu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