Page 262 - 2017 White Paper
P. 262
7 White Paper on the Business Environment in China
While the China Post Group Corp was established The plan aims to build an open and sharing
in January of 2007 as part of the effort to divorce the transportation system of logistics by 2018, with a “one
business functions from the regulatory functions of the waybill” transportation system and a railway system
entity, sentiment reflects uncertainty about the lack of covering over 80 percent of China’s large ports and
bias in the process. China Daily’s coverage of the launch logistics parks. By 2020, the plan envisions competitive
went on to discuss the ongoing reform of the law, transportation and logistics enterprises in the country
stating that, “The conflict of interest between non-postal and a new system with standardized facilities, networked
service providers, such as express delivery and logistics information, fair and orderly market, and safe and
companies, and the postal system is clearly affecting effective operations. It intends to raise the coverage rate
the law revision process”, and that “Under the current of the urban and rural logistics distribution network by
legislation mechanism, departmental interests are hard, 10 percentage points. The plan urged the government
if not impossible, to remove from legislation” (China Daily to optimize transportation hubs and logistics links,
2007). enhance efforts to build major roads for container
transport by 2020, and drive the construction of railways
It has also been commented by industry players and highways for passengers and freight, respectively,
that both domestic and international companies in the in the Yangtze River and Pearl River Delta regions.
sector essentially have to “compete with [their] regulator” Industry associations to launch plans to promote the one
(Mitchell 2007). waybill system, with one-stop transfer and delivery, and
charges, are to be supported. The plan also highlighted
In April 2009 Chinese legislators released the final establishing well-supervised platforms of transportation
version of the new Postal Law, which became effective and logistics, including management platforms and
on October 1, 2009. Under the new regime, intra-city information sharing platforms (The State Council, The
delivery of items weighing less than 50 grams, and People’s Republic of China 2016).
the inter-city delivery of items weighing less than 100
grams will be handled exclusively by the state-owned Sector Decentralization and Efficiency
monopoly, China Post (China Daily 2009). Foreign
participants in the industry are furthermore prohibited Premier Li Keqiang called for efforts to cut red tape
from delivering letters in the mainland at all, although and simplify procedures for new investment projects,
they are still permitted to deliver parcels domestically according to an October 2016 statement issued after
and both parcels and express letters internationally (Zhu an executive meeting of the State Council. Provincial
2009). governments will approve investment projects related
to container terminals, vehicle engines, urban transit
This overt protection of the state monopoly is systems and inland water transportation, according to
unsurprising (if disappointing) given that domestic the new regulations. The China Railway Corporation will
express delivery is a major source of revenue for the State be allowed to make decisions regarding railways, bridges
Post Bureau, which operates the China Post monopoly— and tunnels, the statement said. In principle, no new
reportedly accounting for 96 billion yuan, or 43 percent gasoline-powered vehicle factories will be allowed to
of its total revenue in 2008 (Zhu 2009). open. Continuing delegation efforts from 2013 and 2014,
the central government moved a raft of administrative
Notable Policy Activity approval procedures, and delegated approval power, to
lower government levels. The meeting stressed measures
Integrated Transport and Logistics to improve the country’s business environment. More
Development efforts are needed to create a level playing field for both
domestic and foreign companies, the statement said
On June 21, 2016, the State Council approved an (Xinhua 2016).
action plan, formulated by the National Development
and Reform Commission to promote the integrated
development of transportation and logistics industries
and reduce the costs of social logistics.
262
While the China Post Group Corp was established The plan aims to build an open and sharing
in January of 2007 as part of the effort to divorce the transportation system of logistics by 2018, with a “one
business functions from the regulatory functions of the waybill” transportation system and a railway system
entity, sentiment reflects uncertainty about the lack of covering over 80 percent of China’s large ports and
bias in the process. China Daily’s coverage of the launch logistics parks. By 2020, the plan envisions competitive
went on to discuss the ongoing reform of the law, transportation and logistics enterprises in the country
stating that, “The conflict of interest between non-postal and a new system with standardized facilities, networked
service providers, such as express delivery and logistics information, fair and orderly market, and safe and
companies, and the postal system is clearly affecting effective operations. It intends to raise the coverage rate
the law revision process”, and that “Under the current of the urban and rural logistics distribution network by
legislation mechanism, departmental interests are hard, 10 percentage points. The plan urged the government
if not impossible, to remove from legislation” (China Daily to optimize transportation hubs and logistics links,
2007). enhance efforts to build major roads for container
transport by 2020, and drive the construction of railways
It has also been commented by industry players and highways for passengers and freight, respectively,
that both domestic and international companies in the in the Yangtze River and Pearl River Delta regions.
sector essentially have to “compete with [their] regulator” Industry associations to launch plans to promote the one
(Mitchell 2007). waybill system, with one-stop transfer and delivery, and
charges, are to be supported. The plan also highlighted
In April 2009 Chinese legislators released the final establishing well-supervised platforms of transportation
version of the new Postal Law, which became effective and logistics, including management platforms and
on October 1, 2009. Under the new regime, intra-city information sharing platforms (The State Council, The
delivery of items weighing less than 50 grams, and People’s Republic of China 2016).
the inter-city delivery of items weighing less than 100
grams will be handled exclusively by the state-owned Sector Decentralization and Efficiency
monopoly, China Post (China Daily 2009). Foreign
participants in the industry are furthermore prohibited Premier Li Keqiang called for efforts to cut red tape
from delivering letters in the mainland at all, although and simplify procedures for new investment projects,
they are still permitted to deliver parcels domestically according to an October 2016 statement issued after
and both parcels and express letters internationally (Zhu an executive meeting of the State Council. Provincial
2009). governments will approve investment projects related
to container terminals, vehicle engines, urban transit
This overt protection of the state monopoly is systems and inland water transportation, according to
unsurprising (if disappointing) given that domestic the new regulations. The China Railway Corporation will
express delivery is a major source of revenue for the State be allowed to make decisions regarding railways, bridges
Post Bureau, which operates the China Post monopoly— and tunnels, the statement said. In principle, no new
reportedly accounting for 96 billion yuan, or 43 percent gasoline-powered vehicle factories will be allowed to
of its total revenue in 2008 (Zhu 2009). open. Continuing delegation efforts from 2013 and 2014,
the central government moved a raft of administrative
Notable Policy Activity approval procedures, and delegated approval power, to
lower government levels. The meeting stressed measures
Integrated Transport and Logistics to improve the country’s business environment. More
Development efforts are needed to create a level playing field for both
domestic and foreign companies, the statement said
On June 21, 2016, the State Council approved an (Xinhua 2016).
action plan, formulated by the National Development
and Reform Commission to promote the integrated
development of transportation and logistics industries
and reduce the costs of social logistics.
262
