Published: Mon, June 24, 2019
Markets | By Otis Pena

FedEx refuses to deliver a Huawei phone to the US

FedEx refuses to deliver a Huawei phone to the US

A PCMag writer out in London, Adam Smith was using the Huawei P30 Pro for his job at the tech site and tried to send it to PCMag's NY office so that the site's Huawei P30 Pro review could be updated.

"Parcel returned by FedEx, due USA government issue with Huawei and China government [sic]", the notice on the returned package read. The company said that it would deliver all Huawei products to addresses other than the ones of Huawei and its affiliates put on a us national security blacklist. Huawei doesn't use Google's Android or Google apps in China, with Chinese smartphone users experiencing more of an Android Open Source Project (AOSP) setup there with some Huawei apps.

Huawei's future especially as it concerns smartphones continues to be in doubt in the face of the recent U.S. ban. FedEx said it has no "general ban" on Huawei products. PCMag's Editor Adam Smith tried shipping a Huawei P30 Pro from the UK to his colleagues in the United States who wanted to re-review the device. It should prevent Huawei from receiving parts from US companies, not stop people from shipping their phones. It added that the courier had a "vendetta".

The protracted battle between the United States and China ramped up Monday - not over a new slate of tariffs or political jousting, but over a FedEx package. However honest or accurate the FedEx statement is, the Chinese government may well reject it.

It was worth a shot, FedEx, but Huawei, who according to Reuters, was already reexamining its relationship with FedEx after the earlier incident, so FedEx will likely have just soured its business relationship with the second largest electronics supplier in the world after Samsung with this recent incident, intentional or not.

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Trump also nominated David L Norquist to be Deputy Secretary of Defence and Ryan D McCarthy to be Secretary of the army. Shanahan, who took over for former Defense Secretary James Mattis in January, left the position on Friday.

This marks the second time FedEx has been caught among Huawei, the United States and China.

Being in the "crosshairs" of the Chinese government "is a tremendous headwind and risk" for FedEx, Trip Miller, said managing partner at Memphis-based Gullane Capital Partners, which holds a FedEx position valued at roughly $7 million.

The U.S. Commerce Department on Friday added five Chinese organizations involved in supercomputing with military-related applications to a so-called Entity List, effectively barring U.S. firms from selling technology to them without government approval.

A telephone call between U.S. President Donald Trump and Chinese President Xi JinPing last week, as well as confirmation the two will meet in Japan on the sidelines of a Group of 20 summit, have rekindled hopes of a detente.

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