China’s New Threat Could Savage FedEx

By Douglas A. McIntyre Updated Jan 6, 4:10AM EST · Published Jun 1, 10:34AM EDT

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Another company is about to be caught up in the China trade war. The Chinese government announced it would look that the freight company’s actions under the “suspicion of undermining the legitimate rights and interests of Chinese clients.” It is not entirely clear what that means.

Part of the official announcement by the government is that FedEx did not deliver packages to some key Chinese companies. These were neither named by an individual firm or industry. It may well be that the decision is a simple retaliation for actions taken by the U.S. government against telecom giant Huawei. Huawei has recently accused FedEx of failures to deliver packages from its suppliers, presumably because of the U.S. government ban on the use of its technology in the U.S. The American government has tried to get other nations to follow suit, which would further damage the Chinese company.

The trade war has ratcheted up to a level which includes U.S. tariffs on at least $200 billion in goods, China’s decision to cease the buying of U.S. soybeans, China’s treat to block the export of rare earth metals which are essential in much U.S. built technology and military products.

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The fight may quickly damage both stock markets and the overall economy according to many experts, the OEDC, and the IMF.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.