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China grants FedEx, UPS operating licenses for some Chinese cities

September 11, 2012


Package delivery companies FedEx and United Parcel Service have received approval to provide express-package services in some cities of China on their own, the country's State Postal Bureau (SPB) said on its website last week.

The approval gives FedEx access to eight cities while UPS was given access to five cities, the SPB said.

The approval of the licenses was first reported by the Wall Street Journal, which also said that FedEx already provides services in Chinese cities through joint ventures with local companies while UPS doesn't have partnerships with Chinese companies.

The authorization comes four months after Chinese regulators approved a $1.6 billion initial public offering by state-owned China Postal Express & Logistics, one of the largest courier companies in the Chinese domestic market.

According to the government body, FedEx can now operate in the cities of Shanghai, Guangzhou, Shenzhen, Hangzhou, Tianjin, Dalian, Zhengzhou and Chengdu.

UPS was given a license for the cities of Shanghai, Guangzhou, Shenzhen, Tianjin and Xi'an.

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