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[Asia Economy Beijing=Special Correspondent Jo Young-shin] Six Chinese logistics and courier companies, including Winda and Yuantong, will raise delivery fees for delivery platform workers (couriers) starting from the 1st of next month. This measure was taken after Chinese President Xi Jinping raised the issue of common prosperity (共同富裕), and it is expected that delivery workers' wages will increase.

According to Chinese media Pengpai on the 30th, six Chinese logistics and courier companies including Winda, Yuantong, and Shentong will increase the delivery fee per package for couriers by 0.1 yuan (about 18 Korean won) starting September 1st.

Photo by Global Times capture

Pengpai explained that this delivery fee increase is in accordance with the Chinese central government's directive to legally protect the rights and interests of couriers. The Chinese government has instructed each logistics and courier company to provide insurance benefits and guarantee minimum wages for couriers.

Pengpai stated that delivery fees are the main source of income for couriers, and the increase in delivery fees means that couriers' income will rise. It also added that in third- and fourth-tier cities and economically underdeveloped central and western regions, the volume of courier deliveries is not high, leading to a high turnover rate among couriers in those areas.

An industry insider said, "The number of deliveries by couriers varies depending on the region and city, but in Beijing (Chaoyang District), it is about 10,000 deliveries per month," adding, "If the fee increases by 0.1 yuan, a courier's monthly wage could increase by about 1,000 yuan."

Pengpai explained that the increased delivery fee will be jointly borne by courier companies and franchisees, not by consumers.

Huanqiu Shibao emphasized that the wage increase effect for couriers will soon appear and interpreted the increase in courier delivery fees as part of common prosperity.

Xu Yong, a Shanghai logistics industry expert, said, "The increase in courier delivery fees can be seen as a concrete measure by the logistics industry to support China's common prosperity roadmap," and predicted, "If couriers' wages rise, it will help the development of the industry and improve service quality."

The Chinese logistics and courier industry has recently grown rapidly, showing signs of overheating. There are criticisms that the low-price cutthroat competition has become the burden of couriers. In fact, last year, the total number of logistics and courier deliveries in China reached 83.5 billion, more than 14 times the 5.7 billion deliveries in 2012. However, the average express delivery fee per package dropped by half from 18.5 yuan in 2012 to 10.6 yuan last year. Last year, the revenue of Chinese courier and logistics companies reached 1.104 trillion yuan (about 198 trillion Korean won).

Ma Junsheng, Director of the China National Post Bureau, said, "This year, the number of courier deliveries by Chinese logistics and courier companies is estimated to exceed 100 billion," and pointed out, "The Chinese logistics industry is experiencing rapid expansion, but there are many issues to resolve, such as wage arrears."

However, opinions are divided within China as this delivery fee increase could lead to reduced profits for logistics companies and increased burdens on consumers in the future.

Yang Daqing, a Chinese logistics industry expert, explained, "The Chinese logistics and courier market has reached a stage of shifting from price competition to value competition," and said, "A dual pricing structure where low prices correspond to low-price services and high prices correspond to high-price services must be formed to lead sustainable development."

This content was produced with the assistance of AI translation services.