BUSINESS

Couriers Hike Prices in Face of Toxic Competition Crackdown

Published: Aug. 20, 2025 8:08 p.m. GMT+8

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Logistics firms have raised their fees in Guangdong province and the consumer products hub of Yiwu as the government cracks down on excessive competition in the delivery industry. Photo: AI generated

Chinese package delivery companies have raised service fees in two of the country’s largest e-commerce hubs, in response to a government-led campaign to stamp out excessive competition in the industry.

Starting Aug. 4, the base delivery fee in South China’s Guangdong province has been increased by 0.4 yuan (5 U.S. cents) per parcel after local authorities mandated that courier companies charge no less than 1.4 yuan for a package delivery, Caixin has learned.

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Chinese delivery companies raised base service fees in major e-commerce hubs Guangdong and Yiwu, amid government action against excessive industry competition.
Regulators mandated delivery price floors and cracked down on below-cost pricing, with similar past efforts in 2021.
Delivery company stocks surged following the crackdown, while e-commerce merchants face higher costs due to increased logistics fees.

AI generated, for reference only

Who’s Who

Shenwan Hongyuan Securities Co. Ltd.: Shenwan Hongyuan Securities Co. Ltd. published a report indicating that the recent price hikes in China's package delivery industry are due to a top-down regulatory push. This push aims to curb excessive competition and improve profitability for delivery companies.

ZTO Express Co. Ltd.: ZTO Express Co. Ltd. is mentioned as one of the major Chinese delivery companies that experienced double-digit gains in share prices. This rally occurred between July 8 and August 19, following a regulatory crackdown aimed at ending excessive competition and price wars within the delivery industry.

J&T Express Co. Ltd.: J&T Express Co. Ltd. (极兔速递有限公司) is a Chinese package delivery company. Alongside other major Chinese delivery firms like ZTO Express and Yunda Holding, J&T Express saw its share prices experience double-digit gains between July 8 and August 19, following a regulatory crackdown on excessive competition and below-cost pricing in the industry.

Yunda Holding Co. Ltd.: Yunda Holding Co. Ltd. is a major Chinese delivery company. Its share prices, along with those of ZTO Express Co. Ltd. and J&T Express Co. Ltd., experienced double-digit gains between July 8 and August 19. This rally followed a government-led campaign to curb excessive competition and raise service fees in the package delivery industry.

AI generated, for reference only

What Happened When

Fourth quarter of 2019：: Delivery companies began slashing service fees to gain market share.

April 2021：: The Chinese government previously attempted to end a price war in the delivery industry.

2023：: The industry started cutting prices again.

July 1, 2025：: At a meeting of the Central Financial and Economic Affairs Commission, China's top leaders pledged to tighten oversight of enterprises engaged in disorderly low-price competition.

July 8, 2025：: The party committee of the State Post Bureau declared their opposition to excessive competition.

July 8, 2025 to August 19, 2025：: Share prices of major Chinese delivery companies saw double-digit gains following the regulatory crackdown.

July 20, 2025：: The State Post Bureau issued a notice promising to crack down on below-cost pricing in the delivery market.

July 29, 2025：: The State Post Bureau summoned representatives from major courier companies for a meeting, urging them to address excessive competition.

July 30, 2025：: The Fujian Express Association called on delivery companies in the province to avoid competition that squeezes corporate profits.

Early August 2025：: The Beijing Express Association urged local delivery companies to set prices based on cost and stop using unreasonably low prices.