The appeal was made as part of a nationwide campaign to combat “involutionary” competition.
Several express industry associations across China have called on delivery companies to stop selling services below cost, joining a nationwide push to curb destructive price wars that have eroded margins and strained front-line workers.
The calls — issued in recent weeks by industry groups in Beijing, Fujian and Hebei provinces as well as Baoji City in Shaanxi province — follow a July meeting convened by the State Post Bureau with major operators including ZTO Express, YTO Express Group, Yunda Holding, STO Express and J&T Express.
Regulators at the meeting discussed tackling "involution-style" competition — a cycle of cutthroat rivalry that yields diminishing returns — and urged companies to protect the rights of consumers and couriers while maintaining the healthy development of the industry.
In its written appeal issued last week, the Beijing Express Association urged its members to set parcel pickup rates based on costs and safeguard the earnings of companies and last-mile stations. It also pressed operators to avoid monopolistic tactics such as exclusive partnerships, and to comply with China's anti-monopoly, anti-unfair competition and pricing laws.
The notices from industry groups in other regions also urged delivery companies to uphold fair competition principles, resist irrational competition, fulfill corporate responsibilities and focus on strengthening core competitiveness.
The association in Baoji City also urged operators to maintain reasonable margins and invest in innovation — from AI-enabled sorting and route optimization to value-added services such as personalized packaging and scheduled deliveries — to build differentiated offerings and reduce reliance on price competition.
China has increasingly targeted this type of destructive competition in various sectors, ranging from food delivery to construction, electric vehicles and communications, where price undercutting has reduced service quality and hindered the sustainable development of the industry.
In the express delivery sector, heavy service homogenization has fueled a race to the bottom. The Fujian Express Association said in a public letter that while provincial parcel volumes rose 11.4 percent in the first half of 2025, the average price per item fell 4.5 percent, or 0.32 yuan ($0.04).
In some regions, nationwide delivery rates have dropped to as low as 0.80 yuan, squeezing last-mile outlets' gross margins to under 0.10 yuan per parcel.
Nationally, express industry revenue climbed 9 percent in June from a year earlier, while revenue per parcel dropped 5.8 percent, according to the State Post Bureau. Second-quarter revenue rose 9.3 percent, with unit income down 6.8 percent.
The race to the bottom comes even as China delivers more parcels than any other country — over 170 billion last year — with a handful of national players dominating the market and locked in a fierce fight for share. The result, industry experts say, reflects structural contradictions.
The e-commerce boom drew heavy investment into logistics, rapidly expanding capacity. As the market matured and customers demanded faster, higher-quality service, operators with similar models and technology could only compete on price — intensifying ““involution.”
Source: MLex
