Published: Tue, June 25, 2019
Electronics | By Kelly Massey

FedEx sues US Govt over enforcing shipping restrictions to Huawei

Last month, China said it would launch an investigation after two parcels sent via FedEx destined for Huawei addresses in Asia were diverted to the United States.

"As a company that is committed to complying with all laws and regulations in the countries we serve, FedEx strongly supports the objectives of USA export control laws", the statement read.

State-run newspaper Global Times on Sunday tweeted that FedEx was likely to be added to that list.

An attempt to ship a Huawei P30 Pro to a recipient in the United States through FedEx was met with a refusal to deliver by the courier company.

Amid a bruising trade dispute between Washington and Beijing, China threatened late in May to unveil an unprecedented hit-list of "unreliable" foreign firms, groups and individuals that harm the interests of Chinese companies.

Trade tensions between the United States and China have extended beyond tariffs, particularly after Washington put Huawei, the world's biggest telecoms gear maker, on a blacklist that effectively bans USA firms from doing business with the company.

An accompanying note explained a United States government "issue" with China prevented the delivery. However, the service sent it back to them after a few days.

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The list mirrors the US Entity List that Huawei was added to in May, essentially barring it from buying US technology upon which it was heavily reliant.

"The Huawei incident concern two packages - two out of 15 million - where a 30-year employee - a great FedEx team member - made an error and diverted two packages for a compliance audit".

FILE PHOTO: A Huawei company logo is seen at the security exhibition in Shanghai, China May 24, 2019.

China's foreign ministry said on Monday that FedEx should offer a proper explanation.

A frustrated member of PC Magazine tweeted about a situation where a UK-based member of the team meant to send a Huawei P30 Pro for testing to Indianapolis via FedEx, only to find the package was returned to the United Kingdom sender. State news agency Xinhua previously said authorities' investigation into FedEx misrouting Huawei packages should not be regarded as retaliation.

Huawei, which said it was reviewing its relationship with FedEx after the mishandling of its packages earlier, did not immediately respond to a Reuters request for comment on Sunday.

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

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