UPS plans to apply this week for a domestic parcel licence from China’s State Post Bureau, according to a report by the Financial Times.

The express delivery company intends to offer next-day delivery and second- and third-day delivery services.

UPS International president Dan Brutto said the opportunities in China were “tremendous”, adding that the market could grow to as much as 5m packages a day.

Meanwhile, DHL’s express division said it was committed to strengthening its market-leading position in China within the next five years, according to a China Daily interview with Ken Allen, chief executive officer of DHL Express.

“China will eventually be the biggest market for DHL Express,” Mr Allen said. The company will invest more in training people and adding service capacities, but there are no plans for China-related acquisitions and mergers.

According to a study published by US consulting firm AT Kearney and Shanghai’s Tongji University, China’s international express market was worth Rmb15.5bn in 2009.