I read somewhere that due to a legacy agreement there is a special arrangement that provides cheap (possibly subsidised) postage from China to the UK. This appears to hand an unfair advantage to suppliers based in China. Now that China is the world's second largest economy, why is this allowed to continue?
I don't think it's a "legacy agreement", it's just the way that the UPU (Universal Postal Union) works.
All countries that are members of the UPU (which basically means everyone) agree to deliver international mail they receive without any extra charge. So the UK post office has to deliver mail received from China without any extra charges being imposed. As postage is very cheap in China (subsidised?), the delivery charges on AliExpress and such are much lower than we see for 'within the country' delivery here in the UK.
Additionally VAT must be levied on packages from China sold on platforms like Amazon, ebay and Aliexpress (a pan-EU change brought in Jan 2021 in the UK and delayed until July 2021 in rEU).
So the playing field is more level. But China still subsidises packages, and the shipping routes are constantly changing (eg trans-Siberian railway rather than ship). More importation is being done by 'logistics' companies that bulk clear packages through customs and inject the packages into the UK system with a Royal Mail sticker, compared with the previous method of an 'air mail letter' originating from Asia - the former goes nowhere near the UPU.
That's not right. There has always been a weird system where any country is free to set its own postal rates and the destination country has to deliver it regardless. That is why in the days when so many subscribed to print magazines, they did come from obscure countries with some mags like Time and LIfe.
Yes and is a real problem when returning duds.
Because it has nothing to do with the size of the economy,
I heard it was because china is one country just like the UK is classed as one country doesn't matter whether you send to England wales or scotland postage rate is the same. Which is why ireland and channel islands can be differnt rates. Same with the USA it doesn't seem to matter whether you ship to New york or LA cost is the same. (for the same size/weight package/insurence )
Yes it was to make postal charges easier and 'fair'. The only time it changes is due to wieght or size.
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