China is accusing U.S.-based shipping company FedEx, of failing to deliver packages from tech company, Huawei. Officials say FedEx diverted the packages to the U.S. instead of sending them to China.

CGTN’s Jim Spellman has more.

 

An investigation by Chinese authorities has found that U.S.-based global shipping giant FedEx is suspected of failing to deliver dozens of packages bound for embattled Chinese tech company Huawei.

“The investigation showed that FedEx was suspected of holding up to more than 100 Huawei packages entering China. Investigators also discovered clues to other violations of the company,” Chinese Foreign Ministry Spokeswoman Hua Chunying said. “I believe that the relevant departments in China will continue to carry out investigations in accordance with the principles of comprehensiveness, objectivity and impartiality. As for the consequences to this company, I think it depends mainly on the results of the investigation.”

The Trump administration has sought to limit Huawei’s ability to do business — sometimes calling the firm a security risk, at other times linking U.S. policies to the on-going trade conflict.

The Chinese investigation was launched after an incident in May, when FedEx diverted two packages of documents, bound for Huawei in China, to the United States.

Initially, FedEx claimed the misrouted packages were the result of isolated “operational error” but now says it was trying to comply with confusing U.S. policies restricting U.S. companies from doing business with Huawei.

In a statement FedEx said:

“We have seen the announcement from the China State Post Bureau about the investigation and are following up on the findings. We have and will continue to fully cooperate with the Chinese authorities on the investigation and we are committed to full compliance with all applicable laws and regulations. These shipments in question were handled while we were trying to comply with the U.S. DOC BIS order which was unclear and resulted in considerable complexity for our operations. We apologize for any confusion or harm to our customers as a result. This is why FedEx initiated the suit against the U.S. DOC to prevent similar occurrences happening in the future. FedEx values our business in China, and we are committed to improving our service to customers and providing the best workplace for our employees.”

FedEx has operated in China since 1984, and according to Data Analytics firm Datanyze, controls more than a fifth of the parcel delivery market in China.

Analysts say this incident may damage FedEx’s reputation in this lucrative market.

FedEx is suing the U.S. Department of Commerce, claiming the Trump administration policy unfairly forces the company to screen the contents of millions of packages.

FedEx says it wants to ensure a situation like the mishandling of the Huawei packages doesn’t happen again.