4 ms·
The Chinese government was not the one subsidizing it. The original UPU treaty [1] stated that countries would pay a flat rate when shipping to another country.
by beowulfey 7y ago
The Chinese government was not the one subsidizing it. The original UPU treaty [1] stated that countries would pay a flat rate when shipping to another country. This was original passed several decades ago. The USPS only was getting paid $1.50 per package to forward on any parcel that arrived for a USA destination from China. Since no USA tax money was involved, the "subsidizing" gets passed onto domestic shipping in the form of increased fares to help cover the loss in revenue.
[1] https://en.wikipedia.org/wiki/Universal_Postal_Union https://en.wikipedia.org/wiki/Universal_Postal_Union