FedEx in China
FedEx’ Express division in China has cut its prices by up to 40% in recent months. Technically it is not quite certain that it can be called dumping — as FedEx claims it has massive excesses it needs to use? But the result, according to the The Economic Observer, is a substantial growth in market share and a monthly loss of RMB50m.
FedEx has reduced its prices for shipments three times in 12 months, with the result that since its last cut in June, its market share has risen and volume has quadrupled. So let us call it dumping.
Chinese competitors, who see their existence in danger, are now reportedly urging the government to start an anti-dumping investigation.
China’s Ministry of Commerce and the China Federation of Logistics and Purchasing have been urged by Chinese express companies to support a proposal that the government launch an anti-dumping investigation into FedEx’ pricing strategy.
China Post’s EMS and S.F. Express, the country’s largest private express delivery, say these price cuts are putting a lot of pressure on their companies, could eliminate the existence of small and middle sized express firms and could fundamentally change China’s express market in the next five years.
Source: BizChina Update