The world's largest package delivery company and a global leader in supply chain services, which has been watching China's World Trade Organization (WTO) progression carefully, says it is satisfied with the way the nation has been fulfilling its trade commitments.

"We are very pleased with it," said Steven Okun, UPS's vice-president for public affairs in the Asia-Pacific region.

Okun says the more trade there is throughout the globe, the better it is for companies such as UPS.

For example, China's gross domestic product grew by 9.1 per cent last year. Its exports surged by 34.6 per cent and imports grew by 39.9 per cent.

Taking advantage of the situation, UPS deliveries from China to the US achieved a yearly growth rate of 50 per cent in the fourth quarter and 45 per cent for the whole year, Okun says.

"The figure is an indication of how well China is opening up following its commitments to the global trading body," he said.

Growth is part of goal of the WTO as it is linked to opening up and increased trade, he adds.

Supportive of China's progress, UPS is involved in all aspects of increasing trade and removing barriers.

"We are participating in the US-China air service negotiation and want to see increased rights for Chinese carriers to the US and for US carriers to China," Okun said.

Talks were held earlier this month between officials from the Civil Aviation Administration of China and the US State Department of Transportation.

They were the first bilateral aviation talks since 1999.

After an agreement in 1999, UPS was granted a flight between China and the United States.

It now has six weekly flights to Beijing and Shanghai, compared to one of its competitors, Federal Express or FedEx, which has 11 weekly flights to Beijing, Shanghai and Shenzhen.

US carriers will likely gain more flights to China after the new round of talks are completed.

So far, only four US carriers UPS, FedEx, United Airlines and Northwest Airlines are allowed to fly to Beijing, Shanghai and Shenzhen. They combine to offer 54 flights per week.

They have already used up their landing quotas and have been pressing for more slots to cope with growing demand for passenger and cargo services.

Okun says he believes there will be a new round of liberalization after the talks.

"That will mean a great expansion for UPS if there's more aviation rights." he said.

Confident on China's further opening, UPS has been investing aggressively in preparation.

It signed an agreement with a Chinese cargo airline last year to expand its service network in China.

Under the terms of the deal, Yangtze River Express Airlines Co will provide regular flights to link UPS's gateway in Shanghai with four major Chinese cities Beijing, Qingdao, Xiamen and Guangzhou.

The deal, the first of its kind between an express company and a local airline, means a one-day faster service for UPS's international shipments.

And UPS is looking to expanding the co-operation, Okun revealed.

UPS also forged a closer relationship with its local partner by subscribing US$35 million worth of shares when transport group Sinotrans made its initial public offer in Hong Kong last February.

In return, Sinotrans decided in July to combine with UPS to buy a 50 per cent stake in its joint venture.

Sinotrans paid 5.4 million yuan (US$652,200) for the stake from its controlling shareholder, the State-run China National Foreign Trade Transportation Group Corp.

UPS began its service in China in 1988 with an agreement with Sinotrans, which has more than 40 years of experience in China's transport industry.

Its Chinese joint venture, based in Beijing, was established in 1996 with Sinotrans.

Before the partnership with UPS, Sinotrans already had joint ventures with DHL and TNT.

Continuing, Okun said: "We also plan to increase brand presence (in China) in a big way, including more UPS vehicles and uniforms as well as print and broadcast advertising."

Already leading the parcel express field, UPS wants to be the top logistics services in China.

"We are taking steps to do that and increase our muscle in terms of warehouses, airplanes, trucks and cargo," Okun said.

The supply chain market is extremely fragmented in China and it is in China's interest to make logistics more efficient, he says.

China is not an option but an essential for UPS, given China's potential as a worldwide manufacturing base, Okun said.

According to research by Boeing, for every 1 per cent increase in gross domestic product, there is a 2 per cent increase in demand for express.

The United States and China have developed a strong trade and investment relationship over the past few decades.

"The amount of business being done by our customers with China is growing exponentially and it is a critically important market to UPS," Okun said.

UPS has made moves to express its loyalty to China. It announced the establishment of its Chinese headquarters in Shanghai last July.

And last month, its Chairman and Chief Executive Officer, Mike Eskew, was elected chairman of the US-China Business Council, the principal organization of US corporations engaged in business relations with China.

By chairing a forum like the US-China Business Council, UPS expects to play a critical role in helping US businesses understand China's growing role in world trade, Okun said.