China’s FedEx probe should not be seen as retaliation: Xinhua

SHANGHAI (Reuters) – China’s investigation into FedEx Corp over misdirected mail should not be regarded as retaliation against the U.S. company, state news agency Xinhua said on Sunday, amid worsening relations between China and the United States.

The inquiry was aimed at sending a message that any economic entity in China should abide by the country’s laws and regulations, it said in a commentary.

“China is willing to share the opportunities in its courier market with foreign investors. Undermining Chinese clients’ legitimate rights and interests, however, is not acceptable,” Xinhua said.

China launched an investigation into FedEx Corp on Friday over parcels delivered to the wrong address, without giving details about the deliveries in question.

The move came after Huawei Technologies Co Ltd complained that the U.S. company had diverted parcels destined for the Chinese tech giant’s addresses in Asia to the United States. FedEx said the packages were “misrouted in error”.

The investigation has fueled concerns that more U.S. companies with operations in China could be caught up in frictions between the two countries, after Washington put Huawei on a blacklist last month citing national security.