According to a research report the vast majority — 80% or more — of China’s overseas express mail services are provided by four foreign logistics giants. These are FedEx and UPS of the United States, DHL which is based in Germany and ex-Australian but now Dutch TNT.

Executive vice chairman Ding Junfa of the China Federation of Logistics and Purchasing said foreign competitors dominate overseas express mail, shipping and logistics businesses aimed at foreign manufacturers and the catering sector.

He said, ‘Domestic competitors will find it hard to break their domination in the short term.’

The report was jointly compiled by the National Development and Reform Commission and the Ministry of Commerce. It said nearly 98% of the clients of the four foreign giants in China were joint ventures or wholly-owned foreign companies.

Domestic logistics firms were unable to break out of the low-value sector of the market. Worth noting is that the report suggested the Chinese government regulate the logistics industry to prevent the formation of monopolies and protect the interests of small and medium-sized firms.