Private firms denounce draft postal law

October 31, 2006 | BY

clpstaff &clp articles

Local and foreign express-delivery companies have criticized the latest draft of China's postal law, saying that it will create unfair competition, breach…

Local and foreign express-delivery companies have criticized the latest draft of China's postal law, saying that it will create unfair competition, breach trade agreements and lead to the closure of non-state businesses which employ hundreds of thousands of workers.

A provision in the draft will effectively give the state-owned China Post a monopoly on parcel deliveries weighing less than 150 grammes, accounting for more than 90% of the intra-city business of private delivery companies, reports the Financial Times.

Although the monopoly on small package deliveries will not immediately have a direct impact on international companies, other provisions favouring China Post

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