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  • The package delivery market is completely open

       2014-09-25 9760
    Key Point:Expulsion was once called by prime minister li keqiang as a black horse in the chinese economy, and now the industry is being forced by policies。Yesterday (24 september), the premier of the state council, li keqiang, convened a general meeting of the state council, which decided to open the domestic package express market to all, and to issue licences to foreign courier enterprises that meet the requirements for authorization, within the l

     

    Expulsion was once called by prime minister li keqiang as “a black horse in the chinese economy”, and now the industry is being forced by policies。

    Yesterday (24 september), the premier of the state council, li keqiang, convened a general meeting of the state council, which decided to open the domestic package express market to all, and to issue licences to foreign courier enterprises that meet the requirements for authorization, within the limits of their authorized operations and in areas where they operate. At the same time, the licensing process will be further simplified to facilitate the linkage of express delivery to electronic commerce and manufacturing。

    Li keqiang said that the express delivery industry was important for stimulating consumption and driving economic development. By opening up domestic express carriers, it is necessary to improve business management and upgrade services to facilitate a wide range of businesses and hundreds of millions of people. In the view of industry experts, in the current state of affairs, the main players in the express delivery industry in all countries are local firms, which are open to foreign investment and have little impact on domestic express delivery。

    Openness has little impact on industry

    At present, our express delivery industry is developing rapidly and, in terms of volume alone, has become the second-largest courier industry, but domestic express delivery companies still receive less than foreign giants。

    At the 2014 meeting of the china development high-level forum, held in march this year, prime minister li keqiang presented the ambitious chinese competitor to the president, president and chief executive officer of the federal express board, one of the delegates abroad. “did i ever ask the head of china's sunfeng express that your goal is to make chinese fedex? He said to me, "no, we're going to go beyond fedex and be a world-class courier!" lee keung said. He promised that china would open its markets more broadly and in a more orderly manner and that the logistics industry would create a more level playing field. At the same time, he reminded schweid to “prepare himself to compete with china”. Six months later, li keqiang, acting under the chairmanship of the state council, decided to open up the domestic package express market in full and to issue licences to foreign courier enterprises that meet the requirements for authorization, within the authorized scope of their operations and in the areas in which they operate。

    Li keqiang said that further opening up of domestic markets and competition between domestic and foreign couriers would help to push domestic firms to better manage their operations, upgrade their services and give consumers more choice. It also contributes to the healthy development of domestic express carriers。

    But at the same time, how are domestic express carriers affected? “in the short term, fdi liberalization will not have an impact on domestic markets.” the chief adviser of the chinese express advisory network, xu yong, interviewed a journalist for daily economic news, said that the entire domestic courier market was now polarized, foreign investment was dominant internationally and domestic firms were dominant in the domestic market。

    Seo yong stated that, in the long run, the impact would not be too great, since when he visited the eu, the united states and the japanese markets, he found that domestic enterprises were the mainstream in the express delivery industry and that there was no foreign-owned business mainstream。

    The standing committee considered that the promotion of express delivery as a “black horse” for the development of modern services could also facilitate the upswing of the logistics industry, further boosting circulation, boosting domestic demand, increasing social employment and contributing actively to steady growth, structural adjustment and welfare。

    While accelerating the “opening” of express delivery, the “reform” should be kept pace. Li keqiang stressed the need to fully open the domestic package delivery market and to ensure the healthy and orderly development of the express delivery industry by insisting on a combination of decentralization and aftercare。

    Industry is looking forward to technical standards/

    Expulsion was once known by prime minister li keqiang as “a black horse in the chinese economy”, but it had been subject to a system of administrative permits for many years。

    According to the daily economic news reporter, the establishment of a nationwide networked express delivery company requires a number of process processes, up to 150 days before and after the establishment of a new illegal branch if the business needs to do so. In addition to the newly established branch, the usual changes in the enterprise's address, legal personality, etc. Also require a lengthy process。

    On the subject of “approval”, the prime minister said that “foreigners do not understand the word”. He referred to the situation a week earlier when the shanghai free trade zone had met with 10 middle and foreign entrepreneurs: the head of an enterprise had “challenged” and before entering the free trade zone, the tender for overseas m & as of an enterprise had to state that “the transaction would automatically be cancelled if the approval of the government was not passed”. It's like "lost on the starting line" before the competition started. While this situation has improved significantly after entering the fta, there are limits on the amount of investment outside of the firm, which still requires approval by the relevant authorities, constraining further enterprise development。

    He then asked, “does the approval department have such an approval process in place, and if the business has lost money, do you subsidize him? If you are determined to subsidize the enterprise proportionately, then such approval may be retained; if you are not so determined, then they shall be cancelled!”

    In accordance with yesterday's day-to-day meeting arrangements, the licensing process will be improved, qualification checks strengthened, procedures simplified and efficiency enhanced. At the same time, it was felt that the development of linkages between express delivery and electronic commerce, manufacturing and integrated transport systems should be advanced, and that the problems of urban express vehicle access should be supported. Security of delivery is guaranteed。

    “i think that the key incentive now for express delivery is to create a good environment for express delivery.” seo yong claims that none of the express carriers at my national camp is currently legal, which is also the biggest obstacle to the development of the courier company。

    “advancing the development of express delivery in conjunction with electronic commerce, manufacturing, is a medium- and long-term development, or is it in the short term to resolve the issue of the legality of the delivery vehicle.” seo yong believes。

    For domestic express carriers, the state department is also in the process of developing a policy to encourage merger restructuring of express carriers and to improve and implement systems such as reorganization filing and foreign merger review. Strengthening of agency and association management, and serious investigation and prosecution of illegal operations, over-scope operations, irregular agents, etc。

    Next, this wave of good policy will be implemented by private courier companies, but seo yong believes that too fast growth is not a good thing and that simply pursuing business volumes will only sacrifice service quality。

    Starting in june, the number of effective consumer complaints for courier operations that had been received by the state postal service, which had been declining, began to grow. In august, the national post office received 23. 4 per cent more effective complaints from consumers about courier operations than in the same year, while in may this figure remained -9. 0 per cent。

    “there are no national technical standards for express delivery vehicles.” xu yong stated that the state encouraged private enterprises to undertake large-scale mergers and reorganizations, but that many of the policy issues currently being addressed in the reorganization would not allow businesses to invest。

    “there is only one standard to regulate if a product standard for express delivery is to be introduced.” seo yong said。

    Responsible editor: zhang dei

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