American courier service provider FedEx filed a lawsuit against the US Department of Commerce this week over its restrictions placed on Chinese tech giant Huawei.
The courier recently got in trouble with Huawei following mistakes that were made in routing some of the company's packages. FedEx argued in its suit that it shouldn't have to be the one to ensure that packages did not contain any prohibited technologies and items.
The Trump administration officially added Huawei into the country's trade blacklist last month, essentially barring it from doing business with any US companies. Conversely, all US companies have been prohibited from doing business with Huawei. This includes the import and export of components, products, and even software.
In FedEx's lawsuit, which was filed in Washington, the company claimed that it was really impossible for it to inspect the contents of each and every package that is sent to offices of Chinese companies such as Huawei.
The suit further pointed out that while the current Export Administration Regulations do offer protection for common carriers from the liability of the contents of packages, it does not protect them from becoming abettors of EAR violations committed by customers.
FedEx had reportedly decided to go to court given that it really had no viable options. The company could operate as usual without any type of specialized inspections for packages going to China, but that could lead to law enforcement action.
Another option would be to halt its operations in China, a move that FedEx obviously does not want to make. FedEx has apparently been caught right in the middle of the ongoing trade dispute between China and the United States, leaving it no choice but to seek legal resolutions.
As the trade dispute trickles over into the tech sector, companies like FedEx are continually being pressured to halt their operations and business in China.
The so-called tech cold war between both countries has proven to entail broader implications as companies struggle to adapt to the recently imposed trade bans and increased tariffs.
FedEx mentioned in a statement that it is still very much committed to following all laws and regulations in the countries where it operates. The company explained that it has invested quite a lot of money and time in establishing its internal export control compliance programs, but the recently imposed sanctions make it impossible for the company to do their jobs properly. FedEx finished its public statement by mentioning that it was simply a transportation company and not a law enforcement agency.
