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China suspects FedEx broke law by declining Huawei shipments: media

China suspects FedEx broke law by declining Huawei shipments: media

By Reuters

People stand near the FedEx Express logo during the presentation of the future extension of the FedEx hub in Roissy-en-France, North of Paris, France, on October 18, 2016. Photo: Reuters

SHANGHAI: Chinese authorities suspect US package delivery company FedEx Corp (FDX.N) violated the law by not making shipments of goods from the tech company Huawei to their recipients, the Xinhua state news agency reported on Friday. China’s investigation of FedEx came after the United States placed Huawei on an “entity list” that effectively bars US-based suppliers from serving the company. Investigators found that FedEx had held back more than 100 Huawei-related shipments, Xinhua reported. Initially, FedEx attributed the failed shipments to an “operational error” but authorities found that the explanation did “not meet reality,” Xinhua reported. “In the midst of the investigation, other clues that FedEx violated laws and regulations were discovered,” Xinhua reported. FedEx did not respond to an emailed request for comment.