China has launched a crackdown on unlicensed express delivery firms as the country gears up to consolidate the crowded industry.

The State Post Bureau of China recently announced suspensions for 56 unlicensed express enterprises, mostly franchised outlets of the country's four largest express delivery networks—ZTO, Shentong, Yunda and Yuantong.

Express firms are mushrooming across the country as the industry picks up momentum thanks to a significant e-commerce boom. In 2010, the sector generated net income of around 57.3 billion yuan ($8.8 billion), up 19.6 percent from the previous year, according to data from the China Express Association (CEA).

But a series of problems have cast an ominous shadow over the sector's growth prospect, including reckless expansion and weak services. Meanwhile, price wars are simmering in the markets as smaller companies vie for businesses, said Shao Zhonglin, Deputy Secretary General of the CEA.

In attempts to reorganize the fragmented industry, policymakers have spared no effort. The government has initiated a program to hand out policy incentives for major express enterprises and encourage mergers and acquisitions in the sector. Moreover, the government also pledged to support share listing and bond sales of express firms. The goal was to foster a batch of internationally competitive giants over the next five years.