Saturday, 17 August, 2019

FedEx delivery service refused to ship a Huawei smartphone to the US

FedEx sues U.S. government over 'impossible' task of policing exports to China FedEx misses delivery of Huawei package to US; China paper says retaliation threatened
Emmett Howard | 25 June, 2019, 11:53

According to Chinese state media, a spokesman for China's foreign ministry said the package error showed that the "U.S. government abuses the concept of national security and uses the state apparatus to suppress a Chinese company on trumped up charges". According to the Global Times, which is known to be supportive of the Chinese state, Fed Ex is now likely to be added to something called the "unreliable entities" list, which is rumoured to have been recently created by the Chinese state to give the USA a taste of its own medicine.

Neither FedEx or Parcelforce has issued an official comment/response to this incident, but should that happen, we'll update this article accordingly.

In the latest incident, technology news outlet PCMag here said that its writer in Britain had attempted to send a Huawei P30 handset to a colleague in the United States.

China is also drawing up its own "Unreliable Entities List" of foreign firms, groups and individuals.

The effects of the United States' ban on Huawei has reached far and wide, resulting in a lot of hoops for the Chinese company to jump through.

The lawsuit is in a bid to stop the USA government from requiring the package giant to enforce a crackdown on the Chinese telecommunications-gear maker.

The so-called 'operational error' comes less than a month after FedEx apologized for rerouting packages sent between offices of Huawei. The EAR places a burden on FedEx to know the content and makeup of its shipment to ascertain if they comply with regulations.

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Smith also discussed China seeking an explanation on two Huawei Technologies shipments that FedEx employees returned, which he described as an error made by a 30-year employee.

In this photo taken on 27 May 2019, a Huawei logo is displayed at a retail store in Beijing.

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.

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.

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.

China's state news agency Xinhua had said at the time that the investigation into FedEx over misdirected mail should not be regarded as retaliation against the USA company, amid the trade spat.

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