The same weekend that the U.S. was reportedly slated to begin collecting higher 25% tariffs from Chinese imports entering by sea, China announced it’s investigating FedEx (FDX) after the carrier allegedly failed to deliver some packages directly to China from other Asian nations.
“China’s relevant government department has decided to file a case for investigation of FedEx on suspicion of undermining the legitimate rights and interests of Chinese clients,” reported Xinhua.
“The U.S. company has recently failed to deliver express packages to designated addresses in China, seriously damaging the lawful rights and interests of its clients and violating laws and regulations governing the express industry in China.”
It was earlier reported that some packages were diverted during delivery to Huawei Technologies’ offices in China. Huawei told Reuters this week that a couple of packages delivered from addresses in Japan to be sent to Huawei in China made a stop in the United States. Other similar incidents also were attempted, the company told Reuters.
Huawei has been the target of U.S. agencies, including the Department of Justice for alleged business ties with Iran, and was involved in a high-profile extradition case in Canada.
FedEx responded Saturday with a statement that the company “values” its business in China and that it would cooperate in the probe.
“Our relationship with Huawei Technologies Co. Ltd. and our relationships with all of our customers in China are important to us. FedEx holds itself to a very high standard of service. FedEx will fully cooperate with any regulatory investigation into how we serve our customers.”
FedEx closed down Friday 3.73% to $154.28 and was edging down slightly in after-hours trading.