Business· TMT

China’s regulators found FedEx held back more than 100 Huawei-related shipments

minutes 2019/07/30 03:22:03
Huawei, FedEx, “unreliable” foreign entities, entity list, trade war

Jul 30, 2019 (China Knowledge) - FedEx's previous statement that the re-routing of Huawei's packages to the US was due to “operational error” is regarded by Chinese state departments as inconsistent with the facts, according to Xinhua News Agency.

China will publish a list of “unreliable” foreign entities that is similar to the “entity list” of the U.S. Companies on the list are deemed as potential threats to the interests of Chinese firms. The country suspects FedEx is in breach of the law by not making shipments of goods from Huawei to the company’s recipients, as China's regulators in an investigation found that FedEx had held back over 100 Huawei related shipments.

In May, the world's largest telecoms equipment supplier Huawei accused FedEx of diverting the company's packages to the US without confirmation. These two packages should have been sent from Japan to Huawei's offices in Mainland China. Huawei also found that FedEx had attempted to change another 2 packages' routes to the US. These two packages should have been destined to the company's office in Hong Kong and Singapore from Vietnam.

These incidents came amid the escalating trade war between China and the U.S., as the American government put Huawei on its “entity list”, barring the Chinese telecom giant and its affiliates from buying products including hardware, software, and services from American suppliers.  China launched an investigation into these incidents in early June and more details of the result will be soon released.

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