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US Courier Firm FedEx To Be Probed By China After Huawie Allegations

US Courier Firm FedEx To Be Probed By China After Huawie Allegations
Following the allegations made by Chinese tech giant Huawei that the United States based parcel delivery giant FedEx had diverted its parcels form the address they were intended to be sent, the Chinese authorities have said that a probe of whether the parcel delivery company had intentionally damaged the legal rights and interests of its clients would be conducted by it, according to a report in China’s official Xinhua news agency.
Even as the trade war between the two largest economies of the world – US and China, worsen with every passing week, the Commerce ministry of China on Friday announced the creation of a list of foreign companies, individuals and organizations that are unreliable" and impinge the interest of Chinese companies. No names were however provided by the ministry.
This is being seen a counter measure to the step taken last month by the Commerce Department of the United States of putting Huawei on its blacklist – which it calls ‘entity list’, which lists foreign companies that are a threat to its national security. That measure effectively blocked Huawei out of the US market and prevented American colonies companies from doing business with the Chinese telecom making giant in terms of both products and technology.  
ON Friday, Huawie alleged that FedEx had diverted two parcels to the US which were destined for Huawei addresses in Asia and had tried to divert to more and hence it was re-evaluating its business relationship with the US firm.
The packages were "misrouted in error", FedEx said.
FedEx recently did not deliver to the right addressees and addresses in China, said a report tin Xinhua without elaborating anything.
FedEx would "fully cooperate with any regulatory investigation into how we serve our customers", the company said in a statement on its website. The Chinese social media account was used on Tuesday by FedEx to apologize for the "mishandling" of Huawei packages and further acknowledge that it was not under any "external pressure" for diverting the packages.
According to the US, the products of the largest telecom equipment maker in the world Huawei are a threat to the national security of the country because they can potentially be used by Chinese authority to spy on western countries.
Such allegations have been repeatedly denied by Huawei and the firm has said that its business is never influenced by or controlled by the government, military or intelligence services of China.
These allegations has been a flashpoint in the trade war between the two biggest economies of the world in recent times as the relationship has sourced further when US president Donald Trump announced the increase of trade tariff from 10 per cent to 25 per cent for Chinese goods worth about $200 billion over allegations that China had stepped back on promises that it had made during the trade negotiations about making structural changes to its economic practices.
The latest tariffs by the US were retaliated to by China with increased tariffs on the majority of US imports on a $60 billion target list.

Christopher J. Mitchell

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