Escalating a dispute over a “wrongful delivery,” China said it is launching a probe into FedEx (NYSE: FDX) and is putting the logistics giant on a list of companies it may blacklist as “unreliable,” Bloomberg reports.
China’s announcement comes after the Trump Administration imposed a ban on business with telecom giant Huawei Technologies and signals yet another tit-for-tat in the intensifying trade war between China and the U.S.
Chinese tariffs on U.S. imports took effect Saturday in Beijing, affecting more than 2,400 goods that face levies of as much as 25 percent compared with 10 percent previously.
Chinese officials also announced a plan to draw up a list of “unreliable entities” that harm the interests of Chinese companies.
FedEx got caught up in the fray this week after it diverted two Huawei deliveries from China to the United States. The packages contained “commercial documents,” a Huawei spokesperson told Reuters. The logistics company has apologized, but China said it’s launching an investigation because FedEx violated Chinese laws and harmed customers.
“Now that China has established a list of unreliable entities, the investigation into FedEx will be a warning to other foreign companies and individuals that violate Chinese laws and regulations,” China Central Television said in a commentary.
Responding to an inquiry from FreightWaves, FedEx issued a statement Saturday morning saying the company values its business in China.
“Our relationship with Huawei Technologies Co. Ltd. and our relationships with all of our customers in China are important to us. FedEx holds itself to a very high standard of service. FedEx will fully cooperate with any regulatory investigation into how we serve our customers.”
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now