In China's package delivery market, smaller is better - Reuters China's 35,000 express delivery companies can ship packages hundreds of miles for less than the cost of a standard U.S. letter, pricing out global players such as FedEx and UPS that control just 3 percent of the fast-growing market. Size is normally an advantage in China, where large state-owned companies dominate industries from banking to energy. In express delivery, however, smaller has proven to be better. Some industry watchers say the next phase of development will see a move towards reliability, service and specialisation instead of low cost. That will weed out many of the smaller companies and benefit the larger ones, including foreign firms.