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Long-awaited reform of China's postal system has begun with the establishment of the new State Postal Bureau and China Post Group Corp yesterday.

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Market-oriented policies modelled on reforms in the telecommunications sector will separate administrative functions and business practices from the original State Postal Bureau.

"China's postal service system enters a new development stage, with the government responsible for market supervision and China Post Group independent in its management," Zhang Xiaoqiang, vice-minister of the National Development and Reform Commission, said at a ceremony yesterday marking the new entities.

But there is much work to do to deepen the reform in the company as well as the administrative body, Zhang said.

For the State Postal Bureau, it is important to improve regulations in the sector and build a fair and orderly market environment, said Ma Junsheng, director of the State Postal Bureau.

More internal reforms should be undertaken at China Post to make the company more efficient, Zhang said.

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