Due to China Economic Net United Parcel Service Inc. (UPS) will eventually offerfinancing to customers in China. China is of the express delivery company’s
fastest-growing markets, a senior executive said. Ken Torok, head of UPS Asia Pacific said “AsChina ascends into the World Trade Organization (WTO), as their financial markets open, we justwant to make sure our capital group can offer similar financial solutions as elsewhere”. “China isnot an option for us. It’s absolutely essential.” The U.S.-based company has already opened arepresentative office for its capital group in Shanghai after a regional survey of small andmedium-sized companies last year showed strong demand for financing. UPS Capital, thefinancial arm of UPS, provides services such as trade risk management and offering credit tobusinesses looking to increase cash flow or lease equipment. Torok did not say when he expected UPSto be able to offer financing, but China is gradually opening its financial sector to foreigncompetition in line with promises it made when it joined the WTO at the end of 2001. Accordingto UPS quarterly results released April 21 UPS export volume from China doubled over a yearearlier. UPS has said it would invest US$500 million to build 20 supply chain facilities in Chinaover the next two years as it focused on expanding beyond package delivery to offer a broad rangeof logistics services.
