China launches investigation into FedEx amid listing of 'unreliable' foreign entities

US package delivery company violated relevant Chinese laws by failing to send packages to correct addresses, report said

Last week, FedEx apologised for delivery errors on Huawei packages following reports that parcels were returned to senders. AP
Last week, FedEx apologised for delivery errors on Huawei packages following reports that parcels were returned to senders. AP

China is launching an investigation into FedEx for the wrongful delivery of packages, the state-run Xinhua News Agency reported on Saturday, a day after it was reported the country is making a list of “unreliable” entities that harm the interests of domestic companies.

The US package delivery company violated relevant Chinese laws and industry regulations by failing to send packages to correct addresses, the report said.That seriously harmed the legitimate rights and interests of its customers, and the relevant authorities decided to initiate an investigation, according to the report.

Last week, FedEx apologised for delivery errors on Huawei packages following reports that parcels were returned to senders. Two packages containing documents being shipped to the company in China from Japan were diverted to the US without authorization, Reuters reported, citing a company spokesman.

“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 read on its flagship evening news program.

“China welcomes foreign companies on condition that they abide by China’s law, regulation, market rules and the spirit of contract, and can’t harm Chinese customers’ legitimate rights.”

China’s retaliatory tariffs on the US officially kicked in Saturday in Beijing, affecting more than 2,400 goods that face levies of as much as 25 per cent, compared with the previous charges of 10 per cent.

The country said it will lay out its position on trade talks with the US in a white paper and hold a rare press conference on the issue on Sunday in Beijing, Bloomberg reported. The document will be released at 10am on Sunday and Vice Commerce Minister Wang Shouwen will take questions, according to an official statement.

On Friday, China said it will set up a mechanism listing foreign enterprises, organisations and individuals that don’t obey market rules, violate contracts and block, cut off supply for non-commercial reasons or severely damage the legitimate interests of Chinese companies, Ministry of Commerce spokesman Gao Feng said. "Necessary measures will be taken" against those on the list, he said, adding that specifics would be released soon.

The Commerce Ministry is going through relevant procedures, and will release the first batch of blacklisted entities soon, according to state-media China Central Television.

The US government has moved to curb Huawei’s ability to sell equipment in the US and buy parts from American suppliers, potentially crippling China’s biggest technology company. That step has helped broaden the tariff war into a wider confrontation between China and the US, at a time when negotiations between the two sides have broken down.

Published: June 1, 2019 07:22 PM

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