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Competition in China’s express delivery market is set to become even more ferocious following the government’s decision to issue UPS and FedEx with licences.

The two US companies have been waiting for the licences, which allow them to deliver B2C parcels within a city, or between two licensed cities, since a 2009 law restricted foreign firms operating in China.

At that time, FedEx held 58 licences, which it now has again, while UPS has 33. This means the firms do not need ...

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