FedEx and UPS could begin domestic delivery in China if the government grants the parcel giants the go-ahead to enter the multibillion and burgeoning market.
Both carriers said talks with the Chinese government are ongoing and didn't diclose when China was expected to make a decision. FedEx and UPS currently provides service between Chinese cities and non-Chinese sites, but not between Chinese cities.
The sought permit reportedly excludes the delivery of letters and other documents, but UPS spokesman Kara Ross reiterated that the process is ongoing and is premature to stipulate the terms of access to the domestic market.
Both carriers have steadily invested in China in recent years. FedEx in September, for example, opened a 533,325-square-foot station in the Pudong Sanlin area of Shanghai, the carrier’s largest facility in the country. The UPS acquisition of TNT Express for $6.6 billion is also aimed at expanding the carrier’s reach in Asia.