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China has targeted FedEx in escalating its trade war with the United States, citing the type of foreign companies it could put on the list of "unreliable" companies.
While the details of China's criteria were just coming out, FedEx's "Illegal Package Delivery" investigation was described by the official news agency as a Beijing warning after the Trump government has banned trade with telecommunications giant Huawei.
A Chinese official said on Sunday that the government is firmly opposed to US "long arm" jurisdiction over Huawei, while minimizing concerns that the planned list of unreliable entities would be used to target companies. foreigners as a tool of retaliation in the trade war.
To name a foreign entity untrustworthy, China will determine whether it discriminates against domestic companies, announced Saturday the Xinhua official news agency. Other considerations will include market rule violations, breach of contract, damage to Chinese companies, and actual or potential threats to national security.
The latest salvo indicates that there is no relaxation in sight in the struggle between the two largest economies in the world at a time when trade negotiations have broken down. China's retaliatory tariffs on US goods began Saturday, affecting more than 2,400 goods subject to levies of up to 25 percent, up from 10 percent previously.
On Sunday, China blamed the United States for the collapse of trade talks and said it would not buckle under the maximum pressure to make concessions. The trade war has not "restored glory to America," and while China does not want a conflict, it will not hesitate, according to a white paper on its negotiations with the United States.
China had announced on Friday that it would draw up a list of "unreliable entities" that harm the interests of Chinese companies. This opens the door to a broad target of the global technology industry, from US giants like Google, Qualcomm and Intel to non-US providers who have cut Huawei, such as Toshiba and Arm.
FedEx apologized for shipping errors on Huawei parcels after parcels were returned to shippers, and China's largest tech company said it was back on its relationship with the US delivery service. Two packages containing documents shipped from Japan to the company in China were sent to the United States without authorization, Reuters reported.
China opened an investigation because FedEx had violated Chinese laws and regulations and harmed customers by sending bad information, Xinhua said. Deputy Commerce Minister Wang Shouwen said on Sunday that there was "no reason to blame China" for opening the FedEx investigation.
"The FedEx survey helps preserve the express delivery order in China and protect the legitimate rights of Chinese businesses and users," CCTV television chief Ma Junsheng told reporters on Sunday. China postal service. "It also helps to ensure the safety of postal communications and the economy."
China's central television said in a comment that China had drawn up a list of unreliable entities and that the FedEx investigation would constitute a warning for other companies and foreigners "who violate the Chinese laws and regulations ". Xinhua used two hashtags in Weibo's publications on the FedEx survey: #ChinaUSTrade and #RetaliateAgainstUSTradeBullying.
FedEx said that it values its business in China and its relationships with Chinese customers, including Huawei. "FedEx will fully cooperate with any regulatory investigation into how we serve our customers," the company said in a statement released on Saturday.
Trade tensions are worsening, raising concerns about the impact on the global economy. Bloomberg said Friday that China has planned to restrict rare earth exports to the United States, if any. On another front, President Donald Trump has announced his intention to impose a 5% tariff on all Mexican goods due to illegal immigration.
With markets threatened by trade threats and rhetoric, the S & P 500 had its worst month in May in seven years. Investors are now considering a meeting between President Trump and Chinese President Xi Jinping at the end of the month at the Group of 20 summit in Osaka, Japan, for possible rapprochement and appeasement. trade tensions.
Trump could ask Treasury Secretary Steven Mnuchin to talk with Chinese officials while he was in Japan next week in the middle of a growing trade dispute, the senior advisor said. from the White House, Kellyanne Conway.
(This story has not been changed by NDTV staff and is generated automatically from a syndicated feed.)
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