China launches investigation into FedEx

Source: The Hill | June 1, 2019 | Tal Axelrod

China announced an investigation into FedEx on Saturday, a move that comes amid an escalating trade war between Washington and Beijing.

Ahead of Chinese officials’ announcement Sunday of their formal stance on trade talks with the U.S., China opened a probe into FedEx’s “wrongful delivery of packages,” Bloomberg reported. 

The move was interpreted as a warning after the White House imposed a ban on business with Chinese tech giant Huawei, according to the report.

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China earlier this week said it would reexamine its relationship with FedEx after reports that parcels containing Huawei packages were returned by FedEx to senders. Two packages being shipped to the company in China from Japan were also reportedly diverted to the U.S. without authorization.

The state-run Xinhua News Agency said Saturday that FedEx had violated Chinese laws and regulations and mistreated customers by misdirecting packages.

“Now that China has established a list of unreliable entities, the investigation into FedEx will be a warning to other foreign companies and individuals that violate Chinese laws and regulations,” China Central Television said in a commentary. 

In a move that could open the door to the targeting of a slew of U.S. tech companies, China announced Friday it would establish an “unreliable entity list” of foreign companies and individuals that “seriously damage” Chinese enterprises.

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