Page 1 of 1

Exclusive: Huawei reviewing FedEx relationship, says packages 'diverted'

PostMessage posted...: Sun Jun 02, 2019 2:02 am
by smix
Exclusive: Huawei reviewing FedEx relationship, says packages 'diverted'
Reuters

URL: https://www.reuters.com/article/us-huaw ... SKCN1SX1RZ
Category: Business
Published: May 27, 2019

Description: HONG KONG (Reuters) - Chinese telecoms equipment maker Huawei is reviewing its relationship with FedEx Corp after it claimed the U.S. package delivery company, without detailed explanation, diverted two parcels destined for Huawei addresses in Asia to the United States and attempted to reroute two others. Huawei told Reuters on Friday that FedEx diverted two packages sent from Japan and addressed to Huawei in China to the United States, and attempted to divert two more packages sent from Vietnam to Huawei offices elsewhere in Asia, all without authorization, providing images of FedEx tracking records. Reuters could not verify the authenticity of the records. Shown the images of the tracking records, FedEx declined to make any comment, saying company policy prevented it from disclosing customer information. Huawei said the four packages only contained documents and “no technology,” which Reuters was unable to independently confirm. Huawei declined to elaborate on why it thought the packages were diverted. “The recent experiences where important commercial documents sent via FedEx were not delivered to their destination, and instead were either diverted to, or were requested to be diverted to, FedEx in the United States, undermines our confidence,” Joe Kelly, a spokesman for Huawei, told Reuters. “We will now have to review our logistics and document delivery support requirements as a direct result of these incidents,” the spokesman said. Huawei acknowledged to Reuters that one package originating in Vietnam was received by Friday, and the other was on its way, according to FedEx tracking records provided by Huawei. FedEx spokeswoman Maury Donahue told Reuters the packages were “misrouted in error”. She acknowledged in an earlier statement that the U.S. Department of Commerce had recently added Chinese companies and affiliates to its “Entity List”, but did not elaborate. FedEx was not requested to divert the packages by any other party, she added. “This is an isolated issue limited to a very small number of packages,” said FedEx, referring to the four parcels affected. “We are aware of all shipments at issue and are working directly with our customers to return the packages to their possession.” FedEx China on Tuesday apologized on its Chinese social media account for the “mishandling” of Huawei packages and confirmed there was no “external pressure” to divert packages. The U.S. Department of Commerce did not reply to a request for comment on whether the incident might be related to its move on May 16 to add Huawei to the so-called “Entity List,” preventing it buying certain items from U.S. companies without U.S. government approval.
FORMAL COMPLAINT
The United States believes Huawei, the world’s largest telecom network gear maker leading the way in creating the next generation of wireless networks known as 5G, is a potential espionage threat because of its close ties with the Chinese government. Huawei has repeatedly denied it is controlled by the Chinese government, military or intelligence services. The issue has become a flashpoint in an escalating trade battle between the world’s two biggest economies. The two packages sent on May 19 and May 20 from Tokyo, intended for Huawei in China, ended up in Memphis, Tennessee, the headquarters of the U.S. company, by May 23, according to images of FedEx tracking records shown to Reuters by Huawei. The two packages originating from Hanoi on May 17, destined for Huawei’s Hong Kong and Singapore offices, were held up after arriving in local FedEx stations in Hong Kong and Singapore on May 21 for “delivery exception,” according to other images Huawei showed Reuters. According to FedEx’s website, the status “exception” means an unexpected event is preventing delivery of a package, for example a customs delay, a holiday, or no one being available to accept delivery. FedEx declined to give details on what the exception was in this case. According to Huawei, a FedEx customer service representative in Vietnam replied to their inquiry on May 22 when two expected packages did not arrive on time, saying: “Please be informed that FDX SG received notification from FDX US to hold and return the package to US. Hence, the shipment is not deliver to consignee and now being hold at FDX station and under process to RTS it (return to sender),” the representative wrote in broken English, according to an email Huawei showed to Reuters. Huawei told Reuters that both Vietnam packages were sent by its shipping agent, a contractor to Huawei whom it did not identify, and contained urgent documents. It said the shipping agent refused permission for FedEx to send the packages to the United States and instructed they be returned, Huawei told Reuters. Reuters could not confirm that. Huawei told Reuters it only learned that the Japan-originated packages, which were sent by suppliers that it did not identify, had been diverted to the United States after checking FedEx’s tracking record. The company said it has lodged a formal complaint with China’s postal regulator, which it said is investigating the incident. China’s State Postal Bureau did not return a request for comment.



China to investigate whether FedEx harmed client interests - Xinhua
Reuters

URL: https://www.reuters.com/article/huawei- ... SB9N1PJ04P
Category: Politics
Published: June 1, 2019

Description: BEIJING, June 1 (Reuters) - China will open an investigation into whether FedEx Corp <FDX damaged the legal rights and interests of its clients, the official Xinhua news agency reported on Saturday. The U.S. package delivery company recently did not deliver to the right addressees and addresses in China, Xinhua, which did not give details, said. Chinese telecoms equipment maker Huawei said this week it was reviewing its relationship with FedEx which it alleged had diverted two parcels destined for Huawei addresses in Asia to the United States and had attempted to reroute two others. FedEx China did not immediately respond to an emailed request for comment.



China to probe FedEx after Huawei says parcels diverted
Reuters

URL: https://www.reuters.com/article/us-huaw ... SKCN1T2338
Category: Politics
Published: June 1, 2019

Description: BEIJING (Reuters) - China will investigate whether FedEx Corp damaged the legal rights and interests of its clients, the official Xinhua news agency said on Saturday, after Chinese telecoms giant Huawei said parcels intended for it were diverted. Amid rising tensions between China and the United States, the Chinese commerce ministry said on Friday it would draft a list of “unreliable” foreign firms and individuals that harm the interests of Chinese companies. It gave no names. Washington last month put Huawei on a blacklist that effectively blocks U.S. firms from doing business with the Shenzhen-based company. Huawei, the world’s largest telecoms equipment maker, told Reuters on Friday it was reviewing its relationship with FedEx, which it alleged had diverted two parcels destined for Huawei addresses in Asia to the United States and had attempted to reroute two others. FedEx said the packages were “misrouted in error.” Xinhua, without elaborating, said FedEx recently did not deliver to the right addressees and addresses in China. FedEx said in a statement it values its relationships with customers in China, and that it would “fully cooperate with any regulatory investigation into how we serve our customers.” On Tuesday, FedEx China apologized on its Chinese social media account for the “mishandling” of Huawei packages and confirmed there was no “external pressure” to divert packages. The U.S. government says Huawei is a potential espionage threat because of its close ties with the Chinese government. Huawei has repeatedly denied it is controlled by the Chinese government, military or intelligence services. The issue has become a flashpoint in the escalating trade war between the world’s two biggest economies. Last month, Washington slapped additional tariffs of up to 25% on $200 billion of Chinese goods, accusing Beijing of reneging on its previous promises to make structural changes to its economic practices. That prompted Beijing to hit back with additional levies on the majority of U.S. imports on a $60 billion target list. The Chinese tariffs took effect on Saturday.