Chinese authorities have filed a case to investigate U.S. parcel delivery service FedEx for allegedly undermining the rights of Chinese clients, state-run Xinhua news agency reported on Saturday.



According to Xinhua, FedEx failed to deliver express packages to designated addresses in China, "seriously damaging the lawful rights and interests of its clients and violating laws and regulations governing the express industry in China."



The Chinese government's move against FedEx comes after Chinese tech company Huawei said it was re-assessing its relationship with the U.S. parcel delivery service after several packages were diverted.



Huawei accused FedEx of diverting two packages postmarked from Japan and destined for company addresses in China to the United States without providing detailed explanation, according to Reuters news agency. FedEx also allegedly attempted to re-route two other packages sent from Vietnam to Huawei addresses elsewhere in Asia without authorization. </s> Chinese authorities have filed a case to investigate U.S. parcel delivery service FedEx for allegedly undermining the rights of Chinese clients, state-run Xinhua news agency reported on Saturday.



According to Xinhua, FedEx failed to deliver express packages to designated addresses in China, "seriously damaging the lawful rights and interests of its clients and violating laws and regulations governing the express industry in China."



The Chinese government's move against FedEX comes after Chinese tech company Huawei said it was re-assessing its relationship with the U.S. parcel delivery service after several packages were diverted.



Huawei accused FedEx of diverting two packages postmarked from Japan and destined for company addresses in China to the United States without providing detailed explanation, according to Reuters news agency. FedEx also allegedly attempted to re-route two other packages sent from Vietnam to Huawei addresses elsewhere in Asia without authorization. 



Huawei said all four packages contained documents and no technology. 



The Trump administration blacklisted Huawei from purchasing U.S. components after declaring a national emergency over threats to U.S. technology last month. The administration has subsequently eased those restrictions, allowing Huawei to buy U.S. components for 90 days to maintain existing networks. 



Washington and Beijing are locked in escalating trade war after the collapse of trade negotiations. The U.S. has more than doubled tariffs on $200 billion of Chinese goods and has threatened to tax all Chinese imports. China has increased tariffs on $60 billion of U.S. goods. </s> June 1 (UPI) -- Bejing authorities have moved to file a case to probe Fedex over allegedly violating Chinese clients rights, the state-run news agency Xinhua reported Saturday.

Xinhua reported that authorities are calling for the investigation based on Fedex allegedly "undermining the legitimate rights," of clients in China.

The U.S. parcel service has failed to deliver express packages to these clients, in violation of "laws and regulations governing the express industry in China," Xinhua said.

Fedex clients involved and the penalties the company could face have not yet been identified.

Still, last week, Chinese multinational technology company Huawei said FedEx had diverted packages to the United States, which should have gone from Japan to its Chinese offices. FedEx reportedly apologized for the error and said it would cooperate fully with regulatory investigation. </s> As the U.S.-China trade war continues to escalate, Beijing has signaled its newest target: FedEx.

Ahead of Chinese officials’ planned announcement on Sunday about their position on trade talks with the U.S., China opened a probe into FedEx’s “wrongful delivery of packages,” according to Bloomberg. The investigation follows a decision by the Trump administration several weeks ago to impose a ban on business with Chinese telecom firm Huawei.

On Saturday, Chinese retaliatory tariffs on the U.S. goods kicked in, after the Trump administration raised tariffs on Chinese goods worth $200 billion to 25 percent, from 10 percent.

“China's relevant government department has decided to file a case for investigation of FedEx on suspicion of undermining the legitimate rights and interests of Chinese clients,” Xinhua, the official state-run press agency of China, said on Saturday.

According to Reuters, FedEx apologized this week for delivery errors on Huawei packages following reports that packages were returned to senders. Huawei accused FedEx of shipping two packages containing documents destined for Huawei in China to the U.S. without authorization, Reuters reported. Now, China's biggest tech company said it’s reviewing its relationship with the U.S. delivery service.

“The U.S. company has recently failed to deliver express packages to designated addresses in China, seriously damaging the lawful rights and interests of its clients and violating laws and regulations governing the express industry in China,” Xinhua added.

In a statement, the company said it values its business in China and its relationship with Chinese clients, including Huawei.

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“FedEx will fully cooperate with any regulatory investigation into how we serve our customers,” the company said on Saturday. </s> BEIJING (AP) — China’s state media says the country is investigating FedEx after it diverted packages sent by Chinese tech giant Huawei.

The official Xinhua news agency reported Saturday that China has opened an investigation into FedEx’s actions.

Xinhua says FedEx “severely harmed clients’ legitimate rights and interests and violated China’s delivery industry regulations.”

Four packages containing paperwork sent out by Huawei were found to have been diverted to FedEx headquarters in Memphis, Tennessee, instead of being delivered to Huawei offices in Asia.

FedEx apologized and said the packages were misrouted accidentally. It added the company wasn’t told by anyone to divert the packages.

The missed deliveries drew unusual attention because of speculation that they’re related to rising U.S.-China trade tensions and U.S. sanctions on Huawei. </s> BEIJING (Reuters) - China will investigate whether FedEx Corp damaged the legal rights and interests of its clients, the official Xinhua news agency said on Saturday, after Chinese telecoms giant Huawei said parcels intended for it were diverted.

Amid rising tensions between China and the United States, the Chinese commerce ministry said on Friday it would draft a list of "unreliable" foreign firms and individuals that harm the interests of Chinese companies. It gave no names.

Washington last month put Huawei on a blacklist that effectively blocks U.S. firms from doing business with the Shenzhen-based company.

Huawei, the world's largest telecoms equipment maker, told Reuters on Friday it was reviewing its relationship with FedEx, which it alleged had diverted two parcels destined for Huawei addresses in Asia to the United States and had attempted to reroute two others.

FedEx said the packages were "misrouted in error."

Xinhua, without elaborating, said FedEx recently did not deliver to the right addressees and addresses in China.

FedEx said in a statement it values its relationships with customers in China, and that it would "fully cooperate with any regulatory investigation into how we serve our customers."

On Tuesday, FedEx China apologized on its Chinese social media account for the "mishandling" of Huawei packages and confirmed there was no "external pressure" to divert packages.

The U.S. government says Huawei is a potential espionage threat because of its close ties with the Chinese government.

Huawei has repeatedly denied it is controlled by the Chinese government, military or intelligence services.

The issue has become a flashpoint in the escalating trade war between the world's two biggest economies.

Last month, Washington slapped additional tariffs of up to 25% on $200 billion of Chinese goods, accusing Beijing of reneging on its previous promises to make structural changes to its economic practices.

That prompted Beijing to hit back with additional levies on the majority of U.S. imports on a $60 billion target list.

The Chinese tariffs took effect on Saturday. </s> Chinese telecoms equipment maker Huawei is reviewing its relationship with FedEx Corp after it claimed the US package delivery company, without detailed explanation, diverted two parcels destined for Huawei addresses in Asia to the United States and attempted to reroute two others.

Huawei told Reuters on Friday that FedEx diverted two packages sent from Japan and addressed to Huawei in China to the United States, and attempted to divert two more packages sent from Vietnam to Huawei offices elsewhere in Asia, all without authorisation, providing images of FedEx tracking records.

Reuters could not verify the authenticity of the records. Shown the images of the tracking records, FedEx declined to make any comment, saying company policy prevented it from disclosing customer information.

Huawei said the four packages only contained documents and “no technology,” which Reuters was unable to independently confirm.

Huawei declined to elaborate on why it thought the packages were diverted.

“The recent experiences where important commercial documents sent via FedEx were not delivered to their destination, and instead were either diverted to, or were requested to be diverted to, FedEx in the United States, undermines our confidence,” Joe Kelly, a spokesman for Huawei, told Reuters.

“We will now have to review our logistics and document delivery support requirements as a direct result of these incidents,” the spokesman said.

Huawei acknowledged to Reuters that one package originating in Vietnam was received by Friday, and the other was on its way, according to FedEx tracking records provided by Huawei.

FedEx spokeswoman Maury Donahue told Reuters the packages were “misrouted in error”. She acknowledged in an earlier statement that the US Department of Commerce had recently added Chinese companies and affiliates to its “Entity List”, but did not elaborate.

FedEx was not requested to divert the packages by any other party, she added.

“This is an isolated issue limited to a very small number of packages,” said FedEx, referring to the four parcels affected. “We are aware of all shipments at issue and are working directly with our customers to return the packages to their possession.”

FedEx China on Tuesday apologised on its Chinese social media account for the “mishandling” of Huawei packages and confirmed there was no “external pressure” to divert packages.

The US Department of Commerce did not reply to a request for comment on whether the incident might be related to its move on May 16 to add Huawei to the so-called “Entity List,” preventing it buying certain items from U.S. companies without U.S. government approval.

The United States believes Huawei, the world’s largest telecom network gear maker leading the way in creating the next generation of wireless networks known as 5G, is a potential espionage threat because of its close ties with the Chinese government.

Huawei has repeatedly denied it is controlled by the Chinese government, military or intelligence services.

The issue has become a flashpoint in an escalating trade battle between the world’s two biggest economies.

The two packages sent on May 19 and May 20 from Tokyo, intended for Huawei in China, ended up in Memphis, Tennessee, the headquarters of the U.S. company, by May 23, according to images of FedEx tracking records shown to Reuters by Huawei.

The two packages originating from Hanoi on May 17, destined for Huawei’s Hong Kong and Singapore offices, were held up after arriving in local FedEx stations in Hong Kong and Singapore on May 21 for “delivery exception,” according to other images Huawei showed Reuters.

According to FedEx’s website, the status “exception” means an unexpected event is preventing delivery of a package, for example a customs delay, a holiday, or no one being available to accept delivery. FedEx declined to give details on what the exception was in this case.

According to Huawei, a FedEx customer service representative in Vietnam replied to their inquiry on May 22 when two expected packages did not arrive on time, saying: “Please be informed that FDX SG received notification from FDX US to hold and return the package to US. Hence, the shipment is not deliver to consignee and now being hold at FDX station and under process to RTS it (return to sender),” the representative wrote in broken English, according to an email Huawei showed to Reuters.

Huawei told Reuters that both Vietnam packages were sent by its shipping agent, a contractor to Huawei whom it did not identify, and contained urgent documents. It said the shipping agent refused permission for FedEx to send the packages to the United States and instructed they be returned, Huawei told Reuters. Reuters could not confirm that.

Huawei told Reuters it only learned that the Japan-originated packages, which were sent by suppliers that it did not identify, had been diverted to the United States after checking FedEx’s tracking record.

The company said it has lodged a formal complaint with China’s postal regulator, which it said is investigating the incident. China’s State Postal Bureau did not return a request for comment.

Tech2 is now on WhatsApp. For all the buzz on the latest tech and science, sign up for our WhatsApp services. Just go to Tech2.com/Whatsapp and hit the Subscribe button. </s> HONG KONG (Reuters) - Chinese telecoms equipment maker Huawei [HWT.UL] is reviewing its relationship with FedEx Corp (FDX.N) after it claimed the U.S. package delivery company, without detailed explanation, diverted two parcels destined for Huawei addresses in Asia to the United States and attempted to reroute two others.

Huawei told Reuters on Friday that FedEx diverted two packages sent from Japan and addressed to Huawei in China to the United States, and attempted to divert two more packages sent from Vietnam to Huawei offices elsewhere in Asia, all without authorisation, providing images of FedEx tracking records.

Reuters could not verify the authenticity of the records. Shown the images of the tracking records, FedEx declined to make any comment, saying company policy prevented it from disclosing customer information.

Huawei said the four packages only contained documents and “no technology,” which Reuters was unable to independently confirm.

Huawei declined to elaborate on why it thought the packages were diverted. Reuters was given no evidence the incident was related to the U.S. government’s move to place Huawei and its affiliates on a trade blacklist in mid-May, effectively banning U.S. firms from doing business with them on security grounds.

“The recent experiences where important commercial documents sent via FedEx were not delivered to their destination, and instead were either diverted to, or were requested to be diverted to, FedEx in the United States, undermines our confidence,” Joe Kelly, a spokesman for Huawei, told Reuters. “We will now have to review our logistics and document delivery support requirements as a direct result of these incidents,” the spokesman said.

Huawei acknowledged to Reuters that one package originating in Vietnam was received by Friday, and the other was on its way, according to FedEx tracking records provided by Huawei.

FedEx spokeswoman Maury Donahue told Reuters the packages were “misrouted in error” and that FedEx was not requested to divert them by any other party.

“This is an isolated issue limited to a very small number of packages,” said FedEx, referring to the four parcels affected. “We are aware of all shipments at issue and are working directly with our customers to return the packages to their possession.”

The U.S. Department of Commerce did not reply to a request for comment on whether the incident might be related to its move on May 16 to add Huawei to the so-called “Entity List,” preventing it buying certain items from U.S. companies without U.S. government approval.

The United States believes Huawei, the world’s largest telecom network gear maker leading the way in creating the next generation of wireless networks known as 5G, is a potential espionage threat because of its close ties with the Chinese government.

Huawei has repeatedly denied it is controlled by the Chinese government, military or intelligence services.

The issue has become a flashpoint in an escalating trade battle between the world’s two biggest economies.

The two packages sent on May 19 and May 20 from Tokyo, intended for Huawei in China, ended up in Memphis, Tennessee, the headquarters of the U.S. company, by May 23, according to images of FedEx tracking records shown to Reuters by Huawei.

The two packages originating from Hanoi on May 17, destined for Huawei’s Hong Kong and Singapore offices, were held up after arriving in local FedEx stations in Hong Kong and Singapore on May 21 for “delivery exception,” according to other images Huawei showed Reuters.

According to FedEx’s website, the status “exception” means an unexpected event is preventing delivery of a package, for example a customs delay, a holiday, or no one being available to accept delivery. FedEx declined to give details on what the exception was in this case.

According to Huawei, a FedEx customer service representative in Vietnam replied to their inquiry on May 22 when two expected packages did not arrive on time, saying: “Please be informed that FDX SG received notification from FDX US to hold and return the package to US. Hence, the shipment is not deliver to consignee and now being hold at FDX station and under process to RTS it (return to sender),” the representative wrote in broken English, according to an email Huawei showed to Reuters.

Huawei told Reuters that both Vietnam packages were sent by its shipping agent, a contractor to Huawei whom it did not identify, and contained urgent documents. It said the shipping agent refused permission for FedEx to send the packages to the United States and instructed they be returned, Huawei told Reuters. Reuters could not confirm that.

Huawei told Reuters it only learned that the Japan-originated packages, which were sent by suppliers that it did not identify, had been diverted to the United States after checking FedEx’s tracking record.

The company said it has lodged a formal complaint with China’s postal regulator, which it said is investigating the incident. China’s State Postal Bureau did not return a request for comment. </s> HONG KONG (Reuters) - Chinese telecoms equipment maker Huawei is reviewing its relationship with FedEx Corp after it claimed the U.S. package delivery company, without detailed explanation, diverted two parcels destined for Huawei addresses in Asia to the United States and attempted to reroute two others.

Huawei told Reuters on Friday that FedEx diverted two packages sent from Japan and addressed to Huawei in China to the United States, and attempted to divert two more packages sent from Vietnam to Huawei offices elsewhere in Asia, all without authorization, providing images of FedEx tracking records.

Reuters could not verify the authenticity of the records. Shown the images of the tracking records, FedEx declined to make any comment, saying company policy prevented it from disclosing customer information.

Huawei said the four packages only contained documents and "no technology," which Reuters was unable to independently confirm.

Huawei declined to elaborate on why it thought the packages were diverted.

"The recent experiences where important commercial documents sent via FedEx were not delivered to their destination, and instead were either diverted to, or were requested to be diverted to, FedEx in the United States, undermines our confidence," Joe Kelly, a spokesman for Huawei, told Reuters.

"We will now have to review our logistics and document delivery support requirements as a direct result of these incidents," the spokesman said.

Huawei acknowledged to Reuters that one package originating in Vietnam was received by Friday, and the other was on its way, according to FedEx tracking records provided by Huawei.

FedEx spokeswoman Maury Donahue told Reuters the packages were "misrouted in error". She acknowledged in an earlier statement that the U.S. Department of Commerce had recently added Chinese companies and affiliates to its "Entity List", but did not elaborate.

FedEx was not requested to divert the packages by any other party, she added.

"This is an isolated issue limited to a very small number of packages," said FedEx, referring to the four parcels affected. "We are aware of all shipments at issue and are working directly with our customers to return the packages to their possession."

FedEx China on Tuesday apologized on its Chinese social media account for the "mishandling" of Huawei packages and confirmed there was no "external pressure" to divert packages.

The U.S. Department of Commerce did not reply to a request for comment on whether the incident might be related to its move on May 16 to add Huawei to the so-called "Entity List," preventing it buying certain items from U.S. companies without U.S. government approval.

The United States believes Huawei, the world's largest telecom network gear maker leading the way in creating the next generation of wireless networks known as 5G, is a potential espionage threat because of its close ties with the Chinese government.

Huawei has repeatedly denied it is controlled by the Chinese government, military or intelligence services.

The issue has become a flashpoint in an escalating trade battle between the world's two biggest economies.

The two packages sent on May 19 and May 20 from Tokyo, intended for Huawei in China, ended up in Memphis, Tennessee, the headquarters of the U.S. company, by May 23, according to images of FedEx tracking records shown to Reuters by Huawei.

The two packages originating from Hanoi on May 17, destined for Huawei's Hong Kong and Singapore offices, were held up after arriving in local FedEx stations in Hong Kong and Singapore on May 21 for "delivery exception," according to other images Huawei showed Reuters.

According to FedEx's website, the status "exception" means an unexpected event is preventing delivery of a package, for example a customs delay, a holiday, or no one being available to accept delivery. FedEx declined to give details on what the exception was in this case.

According to Huawei, a FedEx customer service representative in Vietnam replied to their inquiry on May 22 when two expected packages did not arrive on time, saying: "Please be informed that FDX SG received notification from FDX US to hold and return the package to US. Hence, the shipment is not deliver to consignee and now being hold at FDX station and under process to RTS it (return to sender)," the representative wrote in broken English, according to an email Huawei showed to Reuters.

Huawei told Reuters that both Vietnam packages were sent by its shipping agent, a contractor to Huawei whom it did not identify, and contained urgent documents. It said the shipping agent refused permission for FedEx to send the packages to the United States and instructed they be returned, Huawei told Reuters. Reuters could not confirm that. Huawei told Reuters it only learned that the Japan-originated packages, which were sent by suppliers that it did not identify, had been diverted to the United States after checking FedEx's tracking record. The company said it has lodged a formal complaint with China's postal regulator, which it said is investigating the incident. China's State Postal Bureau did not return a request for comment.
Chinese authorities begin an investigation into American multinational courier delivery services company FedEx for allegedly undermining the rights of Chinese clients. The investigation stems from allegations by Chinese telecommunications company Huawei that FedEx attempted to divert the shipping route of its packages without the company's prior authorization which in turn has been denied by FedEx.