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FedEx Sue's Commerce Department on Huawei's restrictions



FedEx
Corp.

, having botched some deliveries to Huawei Technologies Co., filed a lawsuit on Monday to stop the US government from demanding the package giant to enforce a breakdown on the Chinese telecommunications equipment maker.

The case, filed in a federal court in Washington, DC, claims that US Commerce Department's latest restrictions essentially force FedEx to polish millions of packets shipped daily to ensure that prohibited goods are not exported to Huawei. It's a task, FedEx's claims, that are legal and logistically impossible.

"FedEx is a transport company, not a law enforcement agency," the company said in a statement.

A spokesman for the trade department said it had not yet considered FedEx's complaint, but the agency intended to defend its role in US national security.

In May, the Trade Department, referring to national security issues, said it was adding Huawei and its affiliates to its "Entity List", which prevents companies from providing US-origin technology to Huawei without US government approval.

Huawei has warned that US restrictions can beat as much as $ 30 billion from revenue this year and next. Several US vendors, including chip maker

Broadcom
Inc.,

has warned of a hit for its own sale from the escalating trade damage.

Monday's 1

9-page complaint is not called Huawei, but FedEx has been engaged in the major conflict between the US and China. FedEx apologized last year after it misrouted some of Huawei's packages, including two sent to its global hub in Memphis, Tenn., Instead of China.

Huawei complained publicly and Chinese officials said they opened a survey on FedEx.

The Wall Street Journal reported that the packages were miscalculated after FedEx changed its internal systems to comply with the trade department's new constraints.

FedEx regrets again last week after a Huawei smartphone was sent by a US journalist to the US was returned to the sender.

In its lawsuit, FedEx claims that as a regular operator – much like the US postal service or a telecommunications company – is generally not responsible for the content of messages or shipments.

The success says that FedEx displays the names of senders and recipients to ensure they are not on the entity list. Although it opened every package, FedEx claims in its suit that it would not make technical provisions if its content violates US restrictions.

Steve Gaut, a spokesman for

United Parcel Service
Inc.,

UPS has not experienced any extraordinary circumstances regarding the operation.

"We have had no particular issues with shipping for Huawei or any of our other customers, and we would not be supportive of joining such a case or making such claims," ​​said Mr. Gaut.

The administration, in a broader trade dispute with China, has set up a global campaign against Huawei, the world's largest provider of telecommunications equipment, which some US officials believe has been retained for the Chinese government. Huawei says the equipment is not a security risk and it operates independently by the Beijing Government.

China's Trade Department replied that it was setting up an "unreliable unit list" – a blacklist of foreign companies, organizations and individuals breaking contract, harming Chinese companies for non-commercial reasons or harming national security interests

China has been a key market for both FedEx and UPS, which has components and finished goods in and out of the country's product. sjonshubber. FedEx will probably face standoff questions when it reports quarterly results Tuesday night.


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