UPS and SF Express parent SF Holding have obtained approval from the Chinese Ministry of Commerce for their proposed joint venture.

According to the two companies, the JV will enable them to collaborate on development and provision of international delivery services, initially from China to the US. It will also allow the two companies to leverage their complementary networks, service portfolios, technologies and logistics expertise.

“We’re delighted to help the many customers in China who will now be in a position to trade more easily across borders and better compete on the global stage thanks to product offerings from the UPS and SF join venture,” said Ross McCullough, president of UPS Asia Pacific. “UPS has an aggressive multi-year growth plan in China. Aligning our two networks will increase our market presence by connecting China’s consumers and manufacturers to the US and around the world with logistics solutions that strengthen cross-border B2B and B2C capabilities. This JV is highly symbolic of UPS’s confidence in long-term growth opportunities in China.”

UPS and SF began collaborating in 2015, when UPS Worldwide Express service was made available at SF’s Heike retail stores in Shanghai and Shenzhen.

“The establishment of this joint venture boosts global expansion of Chinese enterprises beyond local borders,” said Alan Wong, group vice president of SF. “SF and UPS are able to maximize the strengths of both companies to continuously innovate and create more competitive products that deliver strong value for customers.”

With the joint venture approved, customers are expected to benefit from greater coverage, additional routing options, increased capacity, more choice, improved reliability, better visibility and a single point of contact for customer service.

The two companies announced their plan to establish the joint venture in May 2017.