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Home >> Business
UPDATED: 19:51, January 30, 2007
China takes stride in postal system reform
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Chinese Vice Premier Huang Ju has urged the country's postal sector to deepen reforms and adopt an enterprising approach to better serve the public and the country's economic and social development.

Officials, workers and departments in the postal sector should explore ways to improve supervision, transfer operating mechanisms and establish a modern corporate system, said Huang in a letter of congratulation on the official operation of the State Post Management Bureau (SPMB) and the China Post Group (CPG) on Monday.

Vice Premier Zeng Peiyan also gave instructions to the postal sector, recognizing its contributions to the country's economic and social development and its important role in guaranteeing the basic communications rights of the public.

The establishment of the CPG and SPMB marked the separation of the regulatory functions of the former State Post Bureau (SPB) from its business activities.

Liu Andong, former director of SPB, has been appointed general manager of CPG, and Ma Junsheng, former deputy director of SPB, has been named to head the SPMB.

The separation of the SPB's regulatory functions from its business activities has been carried out in accordance with the postal system reform scheme issued by the State Council in Aug. 2005.

The SPMB will mainly perform government functions and supervise the postal sector in accordance with state laws. The CPG, a state-solely-owned firm with a registered capital of 80 billion yuan (about 10 billion U.S. dollars), will reform postal and postal savings services.

Traditionally both a supervisor and a player in the market, SPB was placed in a difficult position when more and more companies, including overseas delivery firms, began to compete in the country's lucrative postal market.

Experts said that China has taken a key step forward in the reform of its postal system, but still needs to reform provincial-level postal bureaus, separate basic postal services from competitive businesses, and define the operations of subsidiaries.

Source: Xinhua

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