China formally indicts FedEx for not delivering Huawei’s packages

fedex

Chinese authorities said it suspects that global delivery giant, FedEx Corp violated the law by not delivering packages belonging to Huawei Technologies Co Ltd.

It could be recalled that Chinese telecoms giant, Huawei complained to authorities that FedEx refused to deliver its packages meant for U.S. locations.

In a latest update, Chinese authorities said through its state news agency that FedEx’s explanation that the delivery was hampered by an ‘operational error’ does not hold water.

Xinhua news agency said investigators found out that FedEx did not deliver over 100 packages belonging to Huawei.

In May, the U.S. Department of Commerce placed Huawei and its other affiliates on its ‘Entity List’, a decision that barred the world’s largest telecoms equipment maker from doing business with any U.S. company. The wide-reaching ban which has now been relaxed on specific components not relating to 5G next generation telecommunication network, requires U.S. companies to apply for waiver from the White House.

BUSINESS NEWS
JULY 26, 2019 / 2:05 AM / UPDATED 3 HOURS AGO
China suspects FedEx broke law by declining Huawei shipments: media
Josh Horwitz
A Federal Express delivery truck is shown in downtown Los Angeles, California, U.S., October 24, 2018. REUTERS/Mike Blake
SHANGHAI (Reuters) – Chinese authorities suspect U.S. package delivery company FedEx Corp (FDX.N) violated the law by not making shipments of goods from the tech company Huawei to their recipients, the Xinhua state news agency reported on Friday.

China’s investigation of FedEx came after the United States placed Huawei on an “entity list” that effectively bars U.S.-based suppliers from serving the company.

ADVERTISEMENT

Investigators found that FedEx had held back more than 100 Huawei-related shipments, Xinhua reported.

Initially, FedEx attributed the failed shipments to an “operational error” but authorities found that the explanation did “not meet reality,” Xinhua reported.

ADVERTISEMENT

“In the midst of the investigation, other clues that FedEx violated laws and regulations were discovered,” Xinhua reported.

FedEx did not respond to an emailed request for comment.