China kicks off reform of postal system
The reform is a long-anticipated move to separate its government function from its business pratices.india Updated: Sep 05, 2006 13:40 IST
China's State Post Bureau is embarking on a long-anticipated reform to separate its government function from its business practices, in a move expected to make the country a more level playing field for foreign courier firms.
Deutsche Post's express delivery and logistics arm, DHL, and others have long complained about the monopoly of China Post, the country's state postal bureau, which acts as a policymaker as well as a market player.
In an initial step to overhaul the system, China Post has restructured five previously government-affiliated provincial bureaus and brought them directly under its own jurisdiction, the official said on Tuesday.
Other administrative branches will also be set up across the country, which along with China Post will be responsible for policymaking and implementing laws and regulations, it added.
A separate company would soon be set up to provide postal services and to compete with the likes of FedEx Corp in the fast-growing courier market.
A postal savings bank, destined to be the country's fifth-largest lender, would also be carved out of China Post to serve mostly rural areas.
China Post already offers savings accounts at its 36,000 post offices. The new bank would open for business by the end of the year, state media said in August, citing a senior banking regulator.