China Might Blacklist FedEx

China Might Blacklist FedEx

In the last few months, FedEx and Huawei have been involved in an ongoing dispute as FedEx has not delivered some of Huawei’s parcels in May and June.

On Monday, FedEx said it is suing the US Department of Commerce over trade rules that state the global shipping organization (FedEx) must investigate each one of the 15 million parcels it delivers every day in more than 220 countries and territories.

According to Business Insider, FedEx said in the lawsuit that such inspection is “virtually impossible” to implement.

The lawsuit filed by the shipping company is because the US government wants to require FedEx to examine each parcel to ensure no goods violate the Trump administration’s blacklist of Chinese firms among other trade bans.

FedEx CEO Fred Smith said the failure was not because of any “nefarious activity,” but China is thinking about blocking FedEx so that it does not conduct any business in the country.

The occurrence of this threat from China and the federal lawsuit are causing issues at the delivery giant in many parts of their business.