After deciding to exit China’s domestic express delivery business in June this year, DHL Express said it could take some time before it returns to the market, reported Cargonews Asia.

The express delivery giant said intense completion and the highly fragmented nature of the market made it difficult for its joint venture with Sinotrans to make money. Jerry Hsu, chief executive of DHL Express Asia-Pacific, also said it was difficult to get customers in China to appreciate the value of its core strengths of speed and reliability.

Apex, a Chinese delivery company, has suffered losses since it was bought by DHL-Sinotrans International in 2009.

Another setback for all foreign participants occurred in October 2009 when the Chinese government passed a law prohibiting FIEs from delivering local documents or letters, which account for 35 per cent of total shipments.

“We wish we could have known earlier that the law would change, and if we did, we wouldn’t have invested,” said Hsu.

DHL will consider a return to the domestic market once it becomes more mature and foreign companies are again allowed to deliver local documents, but Mr Hsu doubted this would happen soon.

In the meantime, the company is focusing on the international express business, with a larger hub at Shanghai Pudong International Airport due to open in March next year. It will also deploy more aircraft to serve the mainland market.