FedEx Has Another Problem Delivering A Package From China Tech Company Huawei

By Douglas A. McIntyre Updated Jan 30, 7:23PM EST · Published Jun 23, 8:41AM EDT

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FedEx (NYSE: FDX | FDX Price Prediction) came under pressure from the Chinese government a month ago when freight from telecom company Huawei was not delivered to the correct address. The U.S. government has essentially banned the use of Huawei’s technology by U.S. companies. Huawei, which is controlled by the Chinese government according to some of its critics, said the ban will cost it $30 billion in revenue a year. Just as FedEx seems to put the problem behind it, another Huawei package handled by the freight company was returned to the sender. The Chinese government’s reaction was the glitch was not a mistake.

According to Reuters, “The package in question was mistakenly returned to the shipper, and we apologize for this operational error.” It had been shipped from China to a U.S. destination. FedEx would not say where.

FedEx is in danger of being banned from doing business in China. The Chinese government has threatened to put it on the list of “unreliable entities list”, which is essentially the kiss of death. China medium China’s Global Times tweeted in reaction to the incident, @globaltimesnews:

.@FedEx likely to be added onto #China’s ‘unreliable entities list’ due to its parcel incident on #Huawei product; Chinese netizens not accepting the US firm’s apology again. http://bit.ly/2XtT0kH

All of the FedEx management who spend time on Twitter must have gotten the message quickly. And, FedEx posted its defense: “FedEx can accept and transport all Huawei products except for any shipments to listed Huawei entities on the U.S. Entity List.” However sincere or accurate the FedEx statement is, the Chinese government may well reject it.

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.