FedEx Admits New “Mistake” About Huawie Package, Says Will Not Delivery Huawei Mail

Admission for another “mistake” related to a Huaqwei delivery by FedEx Corp has drawn the ire from China. Even though the United States based courier company apologized for the mistake, the Chinese state media has suggested that such mistakes can land the delivery firm in the soon to be disclosed foreign companies that cause harm to the national interest of China.

FedEx said on Sunday that an “operational error” was behind the returning of a package which has been identified to contain a Huawei phone. The company has further stated that all products that are manufactured by Huawei Technologies Co Ltd would be delivered to their proper addresses except for those which are addressed that belong to Huawei and its affiliate companies which have been put on the blacklist of the US Commerce Department because of perceived security threats.

This latest admission and return of package by FedEx happened even as Chinese agencies are currently conducting a probe into an earlier incident last month of misrouting of packages sent by Huawei by the US delivery company.

On the other hand, a list of foreign companies groups and individuals is being drawn up by China and would be published as an Unreliable Entities List. That list would be similar to the ‘entity list’ published last month by the US Commerce Department in which Huawei and its affiliate companies all around the world were added. That listing of Huawei essentially banned the Chinese firm from purchasing goods or technology from American companies without prior licensing from the US government. Huawei is very dependent on US tech. More Chinese companies were added to that list by the US on Friday.

The US ban had been misinterpreted by FedEx, said an editorial in the Beijing News, a municipal government-run newspaper, on Monday. It further said that US companies need to be “rational” and should not over react to the issue.

According to a report published by the Reuters news agency, the rival of FedEx – United Parcel Service Inc, has also said that it would not delivery any parcels to Huawei addresses that have been put up on the Entity List. It however confirmed that there was no “general ban” on products from Huawei.

The service of neither FedEx nor UPS were currently being used by the Chinese company, said a spokesperson of Huawei to the media.

FedEx’s decision to prevent delivery was beyond its rights and the courier had a “vendetta”, tweeted Huawei on Sunday.

FedEx was attacked again on Chinese social media because of the latest incident and the topic “FedEx apologises again” was trending on Weibo – China’s microblog platform similar to Tweeter. It is likely that FedEx would be added to China’s Unreliable Entities List, tweeted China’s state-run newspaper Global Times on Sunday.

There have been no comments to the reports by China’s commerce ministry or FedEx over the issue of the possibility of the US firm being added on to the Chinese list.

The probe going on currently over the misrouting of Huawei packages by FedEx last month should not be viewed as a retaliatory measure by China, the Chinese state news agency Xinhua had claimed earlier.

(Adapted from Nasdaq.com)

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Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy, Sustainability, Uncategorized

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