FEDEX FORMS JOINT VENTURE IN CHINA
Federal Express, the primary subsidiary of FDX Corp., has formed a joint
venture in China with Da Tien W. Air Services Corp., a government-owned freight forwarder
based in Tianjin.
Through the Beijing-based joint venture, called Federal Express-DTW Co.,
FedEx will able to sell and bill customers directly in the world’s most populous nation.
The new arrangement should help FedEx move through a recent period of
partnership upheaval in China. FedEx was left scrambling to pull together a network of
regional agents after an agreement with Chinese powerhouse EAS International fell apart
last year.
A FedEx official said the company plans to open new branches with Da Tien in
Shanghai, Guangzhou and Shenzhen by 2001, and in 100 more cities by 2005.
FedEx recently expanded its flights to Beijing, Shanghai and Shenzhen
under a liberalized aviation agreement signed by the U.S. and China in
April.