Huawei FedEx China Probe: Chinese officials suspect FedEx withdrew over 100 Huawei packages

admin July 26, 2019

11 1 minute read

Huawei FedEx China Probe: Chinese officials suspect FedEx withdrew over 100 Huawei packages

The Chinese government opened an investigation nearly two months ago after Huawei said FedEx diverted US parcels intended for the company's offices in China.

Two packages were actually shipped from Japan to China, but were shipped to the United States instead. Huawei has said that FedEx attempted to divert another two packages that it intended to be shipped from Vietnam to other Huawei offices in Asia. Huawei said the packages contained documents.

FedEx apologized at the time and said the packages were incorrect. CNN Business has contacted the company to comment on the latest Xinhua report.

Relations between the United States and China are still tense, and Huawei has been a particular quarrel. The US government has said the company poses a national security risk, claims a Huawei claim. The Trump administration in May released the Chinese technology company to a list of companies that undermine US interests ̵[ads1]1; a decision that forced key vendors to bond with Huawei.

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Huawei refused to comment Friday on results of the Chinese probe. When details of the first diverted packages first appeared, Huawei welcomed FedEx's apology, but said it suspected the diversion was intentional.

Chinese authorities said on Friday that "the relevant regulatory department found that FedEx stated that the erroneous transfer of Huawei's packages was" operating error "was inconsistent with the facts," according to the statement published by Xinhua.

When China started its first investigation in June, the government said that the FedEx incident "seriously harmed the legitimate rights and interests of its client, breaking Chinese express delivery rules and regulations."

Authorities said Friday that the government's investigation will continue.

The United States and China speak again. But they still act with accusations

President Donald Trump said on the sidelines of the G20 summit last month that he would ease some restrictions on Huawei. But there have been complications since then, including a Washington Post report this week claiming Huawei may have violated US sanctions against North Korea by helping it establish a mobile network.

Huawei told CNN Business earlier this week that it has "no business presence" in North Korea. A spokeswoman declined further comment.

CNN's Yong Xiong and Sherisse Pham contributed to this report.

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