Message from Mr. Liu Liqing, Postmaster General of State Post Bureau of China

2000 is the critical year for China post to realize eliminating loss within three years. In this year, the whole industry made three great achievements:

a) a reduction in deficit by 50%;

b) a business turnover of 42.4 billion Yuan RMB, an increase of 15% over the previous year;

c) an overall productivity of 79.8 thousand Yuan RMB per person, which was an increase of 19.6% over the last year.

2000 is also the last year of the national Ninth Five-Year Plan Period. By hard work in which no efforts spared by our staff, under the correct leadership of the Central Party Committee and the State Council and with support of the governments and Party committees at different levels and all circles around the country, China Post realized a historic break through during this period in particular since we began to run as a self-dependent operator. The business turnover increased by 23.5% annually with the totality up to 42.4 billion Yuan RMB in 2000, which is 2.9 times than that of 1999. Economic results increased evidently. Since China Post began to operate as a self-financing operator two years ago, the deficit has been reduced by 82%, that is, 14.7 billion Yuan RMB in totality. Through system reform, management innovation, technological improvement and intensified operation, great changes have taken place for China Post in the transition from the planned economy to the market economy. We have established a hard-working and pioneering atmosphere, greatly improved the external environment for the development of post, basically met the social demands for postal service and accomplished the periodic objectives for eliminating losses and increasing profits. A "three in one" service network and an independent and complete postal operating system basically established. Today, we basically formed a postal network covering the whole country, connecting cities and towns, joining China to the world, utilizing various transportation methods and possessing advanced information transmission platforms. The intension and extension of the "three in one" service, including postal information transmission, logistics and capital flux, is getting enriched and expanded.

2001 is the first year of the new century and of implementing the Tenth Five-Year Plan for China postal service. It's also the critical year for realizing the target of eliminating the losses within three years.

In the new century, the postal service is facing new difficulties and challenges: with China's entry into the WTO, the service market will be more opened up. The competition will be more and more tough. Most of the large and medium-sized state-owned enterprises have basically realized the target of getting out of dilemma in three years. The postal service is facing more pressure for eliminating the losses. The new development in science and technology, especially in information industry and the springing up of advanced communication methods has become great shock on postal services. The trend of diverging and replacing the traditional postal services becomes increasingly obvious. All these above are threats to the existence of postal service. So we should fully and correctly understand the situation facing the postal service development, grasp opportunities, seek profits and avert losses, acquire confidence and accelerate the development. Thus the postal service will develop continuously, rapidly and soundly and will soon enter into the virtuous circle.

From the year 2001, our country is entering into the period of the Tenth Five-Year Plan, beginning to carry out the strategic objective of the third step in the socialist modernization course. We are stepping into a new stage of building a relatively comfortable society in an all-round way and accelerating the socialist modernization drive. These five years ahead will be the time for China Post to seize opportunities and make progress, the time to promote the overall quality to achieve a great leap. The blueprint of the Tenth Five-year Plan has been drawn up and the goal for our work has been set up. On our way marching toward future, we need to be united as one and spare no efforts in exploring business. So long as we work in a down-to-earth manner and seize every minute, we'll surely realize the bright prospect of China Post.

Postmaster General of Stale Post Bureau: Mr. Liu Liqing