China probe finds FedEx illegally held back over 100 Huawei packages

An investigation by Chinese authorities found US courier delivery services company FedEx illegally withheld Huawei packages and has also violated other laws. That was reported by the state news agency Xinhua.

It said: “The investigation showed that FedEx was suspected of holding up more than 100 Huawei packages entering China. Investigators also discovered clues to other violations of the company.”

The probe into FedEx was launched last month after Chinese telecom Huawei complained the US courier had diverted parcels intended for it. The incident, which was not the first of its kind to affect Huawei, was explained by FedEx as an “operational mistake.”

The American company has apologized for multiple incidents of diversion of Huawei packages and sued the US government last month for what it said was an “impossible task” to “police the contents” of export shipments.

Huawei told Reuters on Thursday that its contractor, electronics maker Flex, had withheld some 700 million yuan ($101.81 million) worth of goods in its China factory.

According to a report by Chinese newspaper Global Times, Flex kept Huawei products in its factory in the southern city of Zhuhai to comply with the US blacklisting which has caused losses for Huawei.

Huawei was placed by Washington on a blacklist in mid-May that effectively bans US firms from doing business with the Shenzhen-based telecom giant.

The US alleges that Huawei could be spying for the Chinese government, a claim which the company, along with the Chinese government, has repeatedly denied.

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