FedEx and UPS are seeking permits from the State Post Bureau to conduct a domestic express business in China. Both applications are now being reviewed.

"Allowing foreign express companies to join in the domestic express business demonstrates China's compliance with WTO rules," Ma Junsheng, Director General of State Post Bureau of China, said at the 2012 China Express Service Forum held in Beijing on May 29. "The Chinese express market is open to various enterprises. Sufficient competition can help improve the quality of services in the Chinese express industry and benefit more people."

The four largest logistics companies in the world—DHL Express, FedEx, TNT Express NV and UPS—entered the Chinese market in the 1980s. But none have managed to dominate the domestic market. One reason foreign companies have not done as well here as elsewhere is that China's domestic express companies still provide services at relatively lower prices.