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In China, FedEx and UPS Wait for Regulators to Renew Permits

Stymied by new rules, FedEx and UPS need permits to restart official service on all their old routes
In China, FedEx and UPS Wait for Regulators to Renew Permits
Illustration by 731

This is a good time to be in the package delivery business in China. Last year, Chinese bought 1.85 trillion yuan ($300 billion) worth of goods online. There were 9.2 billion deliveries in 2013, a 60 percent increase, worth 143 billion yuan, according to the Xinhua News Agency. Only the express delivery market in the U.S. is bigger.

All that activity should translate into business for United Parcel Service and FedEx. Both have been building China operations for decades, with FedEx entering the market in 1984 and UPS following in 1988. By 2009, FedEx had 58 Chinese branches to UPS’s 33.