Chinese postal law hinders express development

Chinese postal law hinders express development    The Global Express Association, which represents the largest international express carriers, expressed 'regret and concern' to the Chinese government about the passage on Friday of the country's new postal law that excludes 'foreign business' from express delivery of domestic letters.
   The association said it was a reverse of China's commitment to refrain from erecting barriers at the Group of Twenty leaders meeting two weeks ago and at the Asia-Pacific Economic Cooperation meeting on Nov. 22 in Lima, Peru.
   'The exclusion of foreign-owned express delivery services from delivery of domestic letters in the new law is contrary to principles of national treatment,' the Global Express Association said in a statement Monday. ' 'Letters' include commercial documents such as proposals and bids, contracts, formulae and engineering plans that senders consider too sensitive or urgent to be transmitted by other methods.
   'By placing transport of such documents off limits to foreign-owned express delivery companies the new postal law denies them an important source of revenue and threatens their viability in the wider express delivery services market. It also curtails incentives to maintain or improve customer-focused services in the limited area left open to competition,' the association said.
   The association further warned that the new postal law reduces China's internal economic efficiency and 'invites protectionist responses from trading partners that will reduce China's opportunities for external trade.'
   The Global Express Association added the express industry is willing and able to make substantial investments in the Chinese market and is 'prepared to commit further investment in the Chinese market if allowed to do so.'