China probes FedEx over Huawei deliveries

China launched an investigation into US delivery company FedEx for illegally withholding more than 100 Huawei packages, the state-run Xinhua news agency said on Friday.

"The investigation showed that FedEx was suspected of holding up more than 100 Huawei packages from entering China," Xinhua said. "Investigators also discovered clues to other violations of the company."

In May, FedEx apologized for "misrouting" what it described as a "small number" of packages for the Chinese technology giant. Another incident occurred in June, prompting FedEx to apologize again for "operational errors" in logistics.

But Chinese investigators said they discovered evidence that contradicts FedEx's description of the events. Huawei has since said it would review its relationship with the delivery company.

Read more: Using Huawei technology is a matter of faith

Under pressure

Earlier this year, US President Donald Trump signed an executive order to stop US companies from using telecommunications equipment made by "foreign adversaries."

Trump banned Huawei, denying it access to domestic markets and restricting US companies from engaging in commercial activities with it. In June, the White House issued a 90-day reprieve for US companies in a confidence-building measure aimed at shoring up trade talks.

US authorities have accused Huawei of creating backdoors in its software for Chinese intelligence agencies, allegations that Huawei has denied. China's Foreign Ministry has denounced US actions against the company, describing them as "hysteria."

Read more: In Duisburg, China expands trade influence in Germany

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ls/msh (Reuters, AFP)