China to probe FedEx after Huawei says parcels diverted | The Daily Star
12:00 AM, June 02, 2019 / LAST MODIFIED: 01:17 AM, June 02, 2019

China to probe FedEx after Huawei says parcels diverted

China will investigate whether FedEx Corp damaged the legal rights and interests of its clients, the official Xinhua news agency said on Saturday, after Chinese telecoms giant Huawei said parcels intended for it were diverted.

Amid worsening tensions between China and the United States, the Chinese commerce ministry said on Friday that it would draft a hit-list of “unreliable” foreign firms and individuals that harm the interests of Chinese companies. It gave no names.

It issued the threat after Washington last month put Huawei on a blacklist that effectively blocks US firms from doing business with the Shenzhen-based telecoms equipment maker.

Huawei told Reuters on Friday that it was reviewing its relationship with FedEx which it alleged had diverted two parcels destined for Huawei addresses in Asia to the United States and had attempted to reroute two others. FedEx said the packages were “misrouted in error”.

Xinhua, without elaborating, said FedEx recently did not deliver to the right addressees and addresses in China.

FedEx China did not immediately respond to an emailed request for comment. On Tuesday, FedEx China apologised on its Chinese social media account for the “mishandling” of Huawei packages and confirmed there was no “external pressure” to divert packages.

Washington believes Huawei, the world’s largest telecom network gear maker, is a potential espionage threat because of its close ties with the Chinese government.

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