CAPEC Press Release on China Postal Law

FOR IMMEDIATE RELEASE

SINGAPORE – 24 April 2009 – The Conference of Asia Pacific Express Carriers (CAPEC) regrets that the recently enacted China Postal Law excludes “foreign business” from entering a segment of the domestic market.

The express delivery services industry is an essential component of China’s developing modern national infrastructure and makes important contributions to overall economic growth. Its services enable just-in-time supply chains and build-to-order manufacturing, which are increasingly important to China’s manufacturing and services firms as they move up the value chain.

The exclusion provision in the law does not allow Chinese companies and consumers full access to foreign express delivery services providers. It will erode the competitiveness of foreign invested firms against their domestic counterparts in the wider express delivery services market and eliminate market incentives to maintain or improve customer-focused services. As a result, there will be fewer options and lower quality services for customers.

China’s own experience over 30 years of reform and market opening demonstrate that Chinese companies do successfully compete against foreign firms. The economy benefits when local and foreign firms compete to offer improved services at a more competitive price.

CAPEC and its members recognize the passage of the law and the State Postal Bureau (SPB) as the industry’s regulator. CAPEC members will continue to provide services in China within the framework of the law and will continue to work with the SPB on full compliance.

CAPEC members are committed to China’s market and will continue to do their best to serve the needs of businesses, individual customers and the economy. To this end, we will continue to work with relevant government agencies, industry associations and domestic players on the upcoming Detailed Implementation Rules of the Postal Law that will take into account the interests of consumers and the rest of the industry. We hope, in the near future, an open and level playing field can be established for the sound development of China’s express delivery services industry.