China authority will file a case for investigation of American multinational courier delivery services company FedEx Corp(FedEx) to see whether the U.S. company harmed the legitimate rights and interests of Chinese clients, the state media Xinhua news agency reported on Saturday.
Earlier this week, Chinese tech giant Huawei accused FedEx of diverting Huawei's two parcels from Asia to the United States and attempting to reroute two others. Huawei said it was reviewing its relationship with FedEx.
Xinhua Claimed this action seriously damaged "the lawful rights and interests of its clients and violating laws and regulations governing the express industry in China."
FedEx apologized for misrouting some Huawei parcels after the news went viral, however, said that "no external parties requested that FedEx transfer these packages".
The state broadcaster CCTV said on the same day, "As a courier company operating in China for decades, FedEx has the obligation to cooperate with the investigations of relevant Chinese authorities."
The state broadcaster reported that the investigation into FedEx "will be a warning to other foreign companies and individuals that violate Chinese laws and regulations" It noted that China has already established a system of “unreliable entity”, which is an apparent response to the U.S. Department of Commerce putting Huawei on its “Entity List,” banning U.S. companies from selling to Huawei, said by Caixin Global.
Targeting FedEx in the deteriorating China-U.S. trade war, China wants to send a message of which foreign companies might be considered as “unreliable entities”, Bloomberg said.
FedEx China has not released an official statement on this investigation as of press time.
