Unshackle Foreign Express Companies.docVIP

Unshackle Foreign Express Companies The foreign express com- panies are ready for a fullforced march. On September 24， Chinese premier Li Keqiang held a standing conference of the State Council， in which the Chinese government decided to fully open the domestic parcel delivery market. The qualified foreign express companies can be given a bigger business scope based on their original scope of business or area of operations. Meanwhile， the licensing process is to be further simplified to promote the joint development of express business， ecommerce and manufacturing. DHL， FedEx， UPS and TNT， the said top four international express giants， immediately got involved in a furious battle the moment they stepped into this market. However， there was only a little space for them to play thanks to the limitations applied by the Chinese market. “The limitations have solidly oppressed the foreign express companies， keeping them away from good business in China，” a report issued by the National Development and Reform Commission and the Ministry of Commerce wrote. “Even though the four companies have taken 75% of the abroad express delivery market of China， in the domestic part， their market share is less than 1%.” They are undoubtedly excited by the news about the full opening-up of this market. For them， the international business， which can earn 40 billion yuan per year， will be the strategic core in the future. Foreign Express Companies Bound by Policies The door of the Chinese express market was opened to foreign companies in the 1980’s. At that time， a large number of foreign companies， led by the top four， successively got into this highly-populated country. But the Chinese government only allowed them to take over the abroad express business or other business with special requirements and a few customers. Limited by the policy， the four express companies take similar strategic routes without the network or talents. They chose to work with China National Foreign Transportat