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FedEx's Sinotrans FedEx has transferred all equity of its threedomestic express delivery companies to Shenzhen Youhe DaotongIndustrial Co., Ltd. According to the announcement of SinotransDevelopment (600270, stock bar), Sinotrans FedEx is a joint ventureestablished by Sinotrans Development and Deutsche Post (FedEx) with50% investment each.
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This means that FedEx, one of the four major internationalexpress delivery companies, will temporarily withdraw from China'sdomestic express delivery business. China's sustained economicdevelopment has created enormous development opportunities for thelogistics and supply chain industries. Strong domestic demand andstrong online consumption are further expanding market potential,driving demand for domestic transportation services, especially inthe automotive, consumer goods, healthcare, retail and high-techsectors. "
Mo Zhiming, CEO of FedEx Supply Chain North Asia, publiclystated, FedEx's supply chain currently operates over 15 largelogistics centers in major cities in China.