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Wendy Wu

China is investigating US delivery services giant FedEx for “wrongful delivery of packages”, Chinese state media reported on Saturday, a day after Beijing warned that it was drafting an “unreliable entity list” of foreign companies.
FedEx failed to send packages to requested addresses in China, which “seriously hurt the legitimate rights and interests of customers and violated relevant laws and regulations of China’s delivery industry”, state news agency Xinhua reported.
“The relevant authorities decided to initiate an investigation,” the report said.
Minutes later, state broadcaster CCTV said in a commentary during its prime-time news that the investigation “will be a warning to other foreign companies, organisations and individuals violating China’s rules and regulations”.
Americans disapprove of Donald Trump’s use of tariffs in trade war, CNBC All-America Economic Survey finds
It said FedEx was obliged to help investigators and Chinese authorities had the right to punish the company based on the investigation’s outcome.
The scrutiny comes as a trade and technology war intensifies between China and the United States.
On Saturday, higher tariffs on US imports in China took effect, a move made in response to Washington’s decision to impose higher duties on a range of Chinese goods.
China is also ratcheting up non-tariff countermeasures after the US blacklisted 70 Chinese tech companies, including its telecom giant Huawei.

On Friday, China’s Ministry of Commerce said it would detail an “unreliable entity list” and specific measures to punish foreign companies found to have violated Chinese laws, hurt Chinese business for non-commercial reasons, or posed threats to national security.
Under the system, companies on the list would automatically come under investigation, the ministry said, adding that the list could be changed over time and those named would have the right to defend themselves.
Earlier this week, Huawei, the world’s largest telecoms equipment supplier, accused FedEx of unauthorised re-routing of its packages. It said the packages had been sent from Japan and were bound for its offices in China, but had been diverted to the US.
China’s retaliatory tariffs on US$60 billion of US goods kick in, fanning fears of extended trade war
Huawei also said FedEx had tried to divert two more packages to the US that were sent from Vietnam and destined for the Chinese firm’s offices in Hong Kong and Singapore.
FedEx apologised for the “mistransportation” of a small number of Huawei shipments but said “there are no external parties” involved in the wrongful delivery to the US.
The incidents also prompted Huawei to start reviewing its logistics and document delivery support requirements.
In the Saturday night commentary, CCTV said China welcomed foreign companies, but they had to abide by the rules and should not hurt the legitimate rights of Chinese customers.
“Only these kinds of foreign companies can have vast development opportunities,” it said.
The Information Office of the State Council said it would release a white paper on Sunday morning on China’s position on the China-US economic and trade talks.


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US logistics firm FedEx is being investigated in China over “wrongful delivery of packages”. Photo: Reuters

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(190520) -- GANZHOU, May 20, 2019 (Xinhua) -- Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, pays tribute to and lays a floral basket at a monument marking the departure of the Long March in Yudu County of Ganzhou City, east China's Jiangxi Province, May 20, 2019. Xi on Monday afternoon visited the starting point of the Long March by the Central Red Army in Yudu County, on an inspection tour of Jiangxi Province. (Xinhua/Xie Huanchi)

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State broadcaster says investigation into US courier company is a warning to foreign firms in China


State broadcaster says investigation into US courier company is a warning to foreign firms in China.


US-China trade war

China targets FedEx over stray packages as new front opens in trade war with the United States

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;}State broadcaster says investigation into US courier company is a warning to foreign firms in China

State broadcaster says investigation into US courier company is a warning to foreign firms in China