Identifier
Created
Classification
Origin
09STATE39698
2009-04-21 20:23:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Secretary of State
Cable title:
DEMARCHE REQUEST: CHINA'S DRAFT POSTAL LAW
how-toVZCZCXYZ0023 PP RUEHWEB DE RUEHC #9698 1112042 ZNR UUUUU ZZH P 212023Z APR 09 FM SECSTATE WASHDC TO RUEHBJ/AMEMBASSY BEIJING PRIORITY 7415 INFO RUEHGV/USMISSION GENEVA PRIORITY 6739 RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
UNCLAS STATE 039698
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON ETRD WTRO CH
SUBJECT: DEMARCHE REQUEST: CHINA'S DRAFT POSTAL LAW
SENSITIVE BUT UNCLASSIFIED ENTIRE TEXT. PLEASE PROTECT
ACCORDINGLY.
UNCLAS STATE 039698
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON ETRD WTRO CH
SUBJECT: DEMARCHE REQUEST: CHINA'S DRAFT POSTAL LAW
SENSITIVE BUT UNCLASSIFIED ENTIRE TEXT. PLEASE PROTECT
ACCORDINGLY.
1. This is an urgent action request. See paragraph 2 below.
Summary and Action Request
--------------
2. The National People's Congress (NPC) is proceeding to
finalize the draft Postal Law in the April 20-24 meeting of
its Standing Committee and all indications are that the final
version of the Law would maintain discrimination against
foreign companies. Post is requested to deliver the below
points to the appropriate MFA official.
Background
--------------
3. Although foreign express delivery companies have an
estimated 80 percent of China's international express
delivery market, they are also interested in establishing a
greater presence in China's domestic market (pick-up and
delivery within China). China's draft Postal Law would
exclude foreign express delivery companies from Chinese
domestic document delivery, placing them at a competitive
disadvantage vis-a-vis Chinese companies that would be able
to provide a full scope of services (i.e., both documents and
packages). The Law would not hinder the ability of foreign
companies to deliver domestic packages.
Talking points
--------------
4. Begin points.
- The United States is very concerned that China's draft
Postal Law is slated to be approved in final form by the
National People's Congress (NPC) this week. Article 50 of
the draft Law would prohibit foreign express delivery
companies from domestic express delivery (pick-up and
delivery within China) of documents. Foreign express delivery
companies will have a very difficult time competing
commercially if, unlike their domestic competitors, they
cannot supply a full scope of express delivery services.
- The United States urges China to postpone a final vote on
the draft Law until issues of concern have been addressed
through dialogue. It also would be useful for China, in the
final law, to provide for increased discretion at the
regulatory level so that regulators have the flexibility to
take account of changing circumstances as they regulate the
express delivery industry.
- Foreign express delivery companies have created thousands
of jobs for Chinese citizens and provide logistics platforms
that propel the growth of other Chinese business sectors. It
would not be in China's best interest to place limits on
their operations, especially now when China's domestic
companies have lost export markets and foreign express
delivery companies can provide essential services to help
Chinese companies reach and serve new customers in the
Chinese domestic market.
If the MFA asks whether the U.S. believes that China is
violating its WTO commitments, or states that China is not
violating its WTO commitments:
- The United States is continuing our analysis of China's WTO
obligations relating to this issue. We would hope that in
the meantime, China would focus on the merits of our trade
concerns and the effect of any new restrictions on China's
economic development.
End talking points.
End action requested.
5. Department appreciates post's assistance.
CLINTON
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ECON ETRD WTRO CH
SUBJECT: DEMARCHE REQUEST: CHINA'S DRAFT POSTAL LAW
SENSITIVE BUT UNCLASSIFIED ENTIRE TEXT. PLEASE PROTECT
ACCORDINGLY.
1. This is an urgent action request. See paragraph 2 below.
Summary and Action Request
--------------
2. The National People's Congress (NPC) is proceeding to
finalize the draft Postal Law in the April 20-24 meeting of
its Standing Committee and all indications are that the final
version of the Law would maintain discrimination against
foreign companies. Post is requested to deliver the below
points to the appropriate MFA official.
Background
--------------
3. Although foreign express delivery companies have an
estimated 80 percent of China's international express
delivery market, they are also interested in establishing a
greater presence in China's domestic market (pick-up and
delivery within China). China's draft Postal Law would
exclude foreign express delivery companies from Chinese
domestic document delivery, placing them at a competitive
disadvantage vis-a-vis Chinese companies that would be able
to provide a full scope of services (i.e., both documents and
packages). The Law would not hinder the ability of foreign
companies to deliver domestic packages.
Talking points
--------------
4. Begin points.
- The United States is very concerned that China's draft
Postal Law is slated to be approved in final form by the
National People's Congress (NPC) this week. Article 50 of
the draft Law would prohibit foreign express delivery
companies from domestic express delivery (pick-up and
delivery within China) of documents. Foreign express delivery
companies will have a very difficult time competing
commercially if, unlike their domestic competitors, they
cannot supply a full scope of express delivery services.
- The United States urges China to postpone a final vote on
the draft Law until issues of concern have been addressed
through dialogue. It also would be useful for China, in the
final law, to provide for increased discretion at the
regulatory level so that regulators have the flexibility to
take account of changing circumstances as they regulate the
express delivery industry.
- Foreign express delivery companies have created thousands
of jobs for Chinese citizens and provide logistics platforms
that propel the growth of other Chinese business sectors. It
would not be in China's best interest to place limits on
their operations, especially now when China's domestic
companies have lost export markets and foreign express
delivery companies can provide essential services to help
Chinese companies reach and serve new customers in the
Chinese domestic market.
If the MFA asks whether the U.S. believes that China is
violating its WTO commitments, or states that China is not
violating its WTO commitments:
- The United States is continuing our analysis of China's WTO
obligations relating to this issue. We would hope that in
the meantime, China would focus on the merits of our trade
concerns and the effect of any new restrictions on China's
economic development.
End talking points.
End action requested.
5. Department appreciates post's assistance.
CLINTON