China will likely add FedEx in its soon-to-be-unveiled Entity List following the second delivery misdirect of a Huawei package, local media outlets hinted. The news comes a few weeks after the first incident of misdirected packages for the Chinese tech giant.
State-run news outlet Global Times hinted in a tweet that the Chinese government may add FedEx to its notorious and yet-to-be-announced list of "unreliable" companies after a second failure to deliver Huawei items accordingly.
China's Entity List has yet to be unveiled to the public but local media reported earlier this month that the list will be composed of companies that may be violating or endangering the rights and interests of Chinese firms.
News about FedEx potentially being added to Beijing's list of unreliable companies to work with came amid escalated trade tensions with Washington. The U.S. already added Huawei to its Entity List in May, pushing the trade war to a fiery level.
In an emailed statement to Reuters, FedEx apologized for the mistake. "The package in question was mistakenly returned to the shipper, and we apologize for this operational error," the company said.
A spokeswoman also confirmed to the outlet that the misdirected packages were supposed to be delivered to the United States. It is unclear what the package contained and other details about the delivery address were not disclosed.
Huawei said shortly after the first delivery error earlier this month that it will review its partnership deals and collaboration with FedEx. Beijing's Commerce Ministry has yet to confirm if the American delivery giant will be added to its Entity List.
Meanwhile, some industry experts have questioned why FedEx refused to ship a Huawei P30 phone to the U.S. last week. PC Magazine writers tried to ship the said model from the United Kingdom to an American address but the package was returned to the U.K. office after several days.
The magazine's writers took a photo of the returned package wherein it was stated that the package was sent back "due U.S. government issue with Huawei and China government." FedEx said in a statement that the label attached to the misdirected package "was not generated" by the company.
Industry experts are debating on the purpose of the individual Huawei P30 unit being blocked from reaching the United States. Some believe FedEx may be trying to get its hands off from the ongoing trade spat between Beijing and the White House.
FedEx is now in the middle of the trade war that could put it in hot waters with Chinese companies relying on the company for multiple deliveries. Huawei has yet to announce whether it will cut ties with the delivery behemoth or not.
