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BEIJING (AP) — China is investigating FedEx after it diverted packages sent
by Chinese tech giant Huawei, state media reported Saturday.
The missed deliveries drew unusual attention because of speculation that
they're related to rising U.S.-China trade tensions and U.S. sanctions
on Huawei.
China has opened an investigation into FedEx's actions, which "
severely harmed clients' legitimate rights and interests and violated
China's delivery industry regulations," the official Xinhua news
agency reported.
Four packages containing paperwork sent out by Huawei were found to have
been diverted to FedEx headquarters in Memphis, Tennessee, instead of being
delivered to Huawei offices in Asia.
FedEx apologized and said the packages were misrouted accidentally. It added
that the company wasn't told by anyone to divert the packages.
Huawei officials have questioned whether the diversions were truly
inadvertent.
"I don't think it is right for any company to intercept or detain
individual documents or information," Song Liuping, Huawei's chief
legal officer, told reporters Wednesday. "If our rights were truly
infringed upon, we have the legal right to defend ourselves."
China announced its investigation into FedEx on the same day that its latest
tariffs on $60 billion worth of U.S. products went into effect. The duties
of 5% to 25% are retaliation against President Donald Trump's decision
to raise duties on $200 billion of Chinese imports to 25%, up from 10%
previously.
The U.S. has accused China of stealing trade secrets and forced technology
transfers. It has placed Huawei on its "Entity List," effectively
barring U.S. firms from selling technology to Huawei without government
approval. China responded to this action Friday, announcing that it will
establish its own list of "unreliable entities" consisting of
foreign businesses, corporations and individuals.
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