Express delivery hurt by China's protectionism
The U.S. Chamber of Commerce expressed regret over China’s decision to pass a postal law this week that does not allow Chinese companies and consumers full access to international express delivery service providers.
"Critical Cargoes" shares this sentiment. As LM readers know, the vibrant free market activity in this sector here has been one of the year’s biggest stories.
“This will deny a level playing field for foreign-invested firms,” said Jeremie Waterman, the Chamber’s senior director for China. “The protectionist message the Chinese government is sending fails to respect international best practices and raises questions about China’s commitments in the World Trade Organization (WTO). This appears to be part of a pattern where China is adopting one set of rules for foreign-invested companies and another for domestic firms.”
The Chamber noted that the express delivery industry is an essential component of China’s effort to develop a modern infrastructure and move from an investment-led model of economic development to one that is led by consumption. Express delivery services enable just-in-time supply chains and built-to-order manufacturing, which is increasingly important as China tries to build a more innovative economy.
“The U.S. Chamber has advocated for a level playing field in China’s express delivery services industry since its accession to the WTO,” Waterman said. “The new law raises significant questions about China’s commitment to open and competitive markets.”
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