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Letter mail monopoly stays with China Post

China has given its national postal service a monopoly over the domestic letter and document delivery market, cutting UPS and rivals FedEx, DHL and TNT out of a huge potential market.



A law went into effect Oct. 1 that stipulates that only China Post may deliver letters and documents mailed within China to Chinese addresses. Foreign carriers may still deliver letters in or out of the country, as well as packages mailed within China



An industry consultant commenting on the move believes the worldwide recession was a motive. "As the world economy went down, it affected Chinese employment as well. China Post were complaining to the government, saying that unless they pass this law, they will have to lay people off.”



After China announced its intention last spring, the European Union said it would investigate whether it violated world trade laws.