Foreign Couriers Now Allowed to Deliver Parcels in China
China is now allowing qualified foreign couriers packages in the domestic market which heats up competition in a fast growing business that has been already marked by price wars. The State Council said after a meet with Premier Li Keqiang that they have decided to free up the Chinese market for parcel delivery and will now allow foreign firms that meet a certain criteria to deliver but no details on the conditions have been released yet.
These measure allow global players such as FedEx, DHL and United Parcel Services to compete in a market forecast that is expected to be the largest market in 20 years. The county will also be encouraging mergers and acquisitions between companies and hopes to improve its review process for deals that involves foreign firms. The mergers and acquisitions are aimed to promote fair completion between domestic and foreign firms.
Before Chinese laws has prohibited foreign companies to deliver packages between locations but are allowed to courier overseas packages to sites in China. assisted by a boost in the e-commerce industry revenues in the express delivery in China has doubled in the span of five years and is expected to overtake the U. S. market in 2032.
As of the moment there are 35,000 express delivery companies in China that ship packages for hundreds and thousands of mile for a cost of a standard letter.