China To Investigate FedEx Over Misrouted Deliveries

Escalating a dispute over a "wrongful delivery," China said it is launching a probe into FedEx FDX and is putting the logistics giant on a list of companies it may blacklist as "unreliable," Bloomberg reports.

China's announcement comes after the Trump Administration imposed a ban on business with telecom giant Huawei Technologies and signals yet another tit-for-tat in the intensifying trade war between China and the U.S.

Chinese tariffs on U.S. imports took effect Saturday in Beijing, affecting more than 2,400 goods that face levies of as much as 25 percent compared with 10 percent previously. 

Chinese officials also announced a plan to draw up a list of "unreliable entities" that harm the interests of Chinese companies.

FedEx got caught up in the fray this week after it diverted two Huawei deliveries from China to the United States. The packages contained "commercial documents," a Huawei spokesperson told Reuters. The logistics company has apologized, but China said it's launching an investigation because FedEx violated Chinese laws and harmed customers.

"Now that China has established a list of unreliable entities, the investigation into FedEx will be a warning to other foreign companies and individuals that violate Chinese laws and regulations," China Central Television said in a commentary.

Responding to an inquiry from FreightWaves, FedEx issued a statement Saturday morning saying the company values its business in China.

"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."

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