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Postal revision in line with WTO rule

(China Daily)
Updated: 2009-04-21 09:07

A proposed legal amendment that would ban foreign couriers from delivering letters in China conforms to the country's commitments to the World Trade Organization (WTO), legislators said yesterday.

An article in the amendment to the Postal Law, which is under second review at the top legislature, bans foreign companies from providing letter delivery services in China.

The rule has raised public concerns and complaints from some international express delivery giants that it might breach China's WTO commitments and threaten the businesses and investments of foreign companies.

But Qiao Xiaoyang, deputy director of the NPC's Law Committee, said the rule creates no barriers for investment and trade.

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He said under WTO rules, foreign investment concerning service and trade was allowed only in the service sectors that a member promised to open.

On entering the WTO in 2001, China made commitments to open express mail services with the exception of "services monopolized by China's postal department according to the law", he said.

The existing law passed in 1986 stipulates delivery of letters in China was a monopoly of the country's postal department.

A 1995 regulation on the management of international cargo transport service providers allowed foreign businesses to deal with international express mail, except for private letters.

"So the amendment doesn't affect the development of foreign business operations in China, nor does it breach China's WTO commitments," Qiao said.

He stressed the legal operations of foreign-invested delivery companies in China would continue to enjoy the protection of Chinese laws.

Li Ying, a public relations officer with DHL, confirmed with China Daily yesterday the company is closely watching the rule.

China Daily - Xinhua