Briefing: Huawei evaluating FedEx ties after packages diverted to US
May 28, 2019
What happened: Chinese telecoms equipment maker Huawei said on Friday that US package delivery company FedEx Corp diverted two parcels destined for a Huawei address in Asia to the United States and attempted to do the same thing to two others without a detailed explanation. Huawei said the two packages, which were sent from Japan and addressed to Huawei in China, were diverted to the US, and FedEx also attempted to divert two more packages sent from Vietnam to Huawei offices elsewhere in Asia. Huawei said the four packages only contained documents and “no technology.” A spokesman of Huawei said the company would have to review its relationship with FedEx.
Why it’s important: After Google pulled Huawei’s Android license and UK-based chipmaker ARM cut ties with it, the US sanction against the Chinese company seems to have applied to a distinctly separate industry: logistics. It was rumored last week that German courier group DHL had suspended services for Huawei products, which DHL has denied (in Chinese). As a US company, FedEx may have to comply with the Trump Administration’s ban on Huawei by suspending its business ties, but diverting its packages to a third party raises privacy concerns, a key component of US allegations against Huawei.