It is many months since the passing of a new postal law in China upheld a China Post monopoly that hobbles the business development of foreign express operators in the domestic market. Little progress has been made in the interim, but not for want of trying.

A question to FedEx Asia Pacific president David Cunningham during a visit to Shanghai this week elicited a characteristically diplomatic response with signs of frustration at slow progress but intention of continuing tenacity to make headway.

“China is a dynamic market in many ways and government and regulators are striving to keep up. FedEx is a global innovator and brings a lot to the economy and operates in a transparent and appropriate manner.

“The regulatory environment is changing and I think in the long-run it is improving…We work closely with [regulators]  across Ministries. We’re looking for a level playing field and for the most part that is what regulators are striving for too.”

The new postal law includes a sentence that translates as: Foreign-invested companies are not allowed to deliver domestic letter and postcard.

A few months before its enactment, FedEx undertook a US$150m investment in what is now its main hub for Asia Pacific at Guangzhou’s Baiyun International Airport. FedEx and its global competitors argue they should be viewed as important contributors to China’s ongoing economic development.

“The express delivery services industry is an essential component of China’s developing modern national infrastructure and makes important contributions to overall economic growth. Its services enable just-in-time supply chains and build-to-order manufacturing, which are increasingly important to China’s manufacturing and services firms as they move up the value chain,” according to the Conference of Asia Pacific Express Carriers (CAPEC) , a body set up to represent the interest of the big four global express operators in Asia.

The law gives China Post time to improve its infrastructure and services so that it can better compete with foreign players in a growing domestic market.

Mr Cunningham was in Shanghai to announce the deployment of the first FedEx Boeing 777 freighter in the region, which will directly connect Shanghai with the express company’s Memphis Super Hub.

“The good news is we’re growing and China’s economy is an important part of that growth,” he said. “The deployment of our first 777F in the Asia Pacific region demonstrates our commitment to support China and the region’s continued growth by facilitating greater access for businesses in the market.”

The new servcie from Shanghai gives businesses a two-hour improvement in cut-off times for shipments to the US. FedEx has 30 of the more fuel efficient 777s on order, the vast majority of which will be deployed in Asia.