ZCZC
BCN-29
CHINA-US-ECONOMY
China to investigate FedEx: state media
BEIJING, June 1, 2019 (BSS/AFP) – Chinese authorities will investigate US
delivery company FedEx over harming the interests of its clients, state media
reported Saturday.
FedEx earlier this week apologised for misrouting some Huawei parcels after
the Chinese telecom giant said it was reviewing its ties with the package
service over the incident.
“Related Chinese government departments announced on June 1 that because US
FedEx did not deliver to the right addresses in China, severely hurting the
legal rights and interests of its customers… (China) will immediately open
an investigation,” state broadcaster CCTV said in a news article.
“As a courier company operating in China for decades, FedEx has the
obligation to cooperate with the investigations of relevant Chinese
authorities,” CCTV said.
China has already established a system of “unreliable” entities, CCTV
noted, adding the investigation will be “a warning to other foreign
companies”.
China’s commerce ministry on Friday announced it would release its own list
of “unreliable entities” that break their commercial contracts and stop
supplying Chinese firms.
A Chinese expert writing in state media Saturday said the new list will
function like the US entity list and ban Chinese companies from selling or
cooperating with listed firms.
The FedEx mix-up came as Huawei faces US moves to blacklist the company,
cutting it off from American-made components it needs for its products,
though a 90-day reprieve was issued.
FedEx said Tuesday that “no external parties requested that FedEx transfer
these packages”.
BSS/AFP/SR/1925 HRS