FedEx charged with alleged unfair competition in China

Nov. 26, 2008 (China Knowledge) - The U.S.-based logistics services company FedEx Corporation is charged with unfair operation by some domestic delivery services companies in China, the Caijing magazine reported.

The domestic companies has appealed to the relevant government bodies and requested them to intervene with the price war that FedEx had launched in the country.

Since 2007, FedEx's minimum rates for corporate customers has been about half that of their domestic rivals. Meanwhile, it also lowered the maximum charges for individual customers and the base weight rate in some cities, according to the report.

FedEx is also accused of violating the anti-monopoly law by signing exclusive agreement with Chinese aviation companies.

The State Post Bureau has not officially commented on the matter, but it suggest this should be regulated by the market, rather than issuing a reference price guideline.