FedEx Might Be The Next To Take A Hit From The Trade War

China is reportedly considering blacklisting FedEx after errors occurred during a Huawei delivery.

While blacklisting FedEx would represent another serious escalation of the trade war ahead of a key meeting, the final decision on the matter rests with senior officials in China.

China created an “unreliable entities” list in May with the stated intention of targeting foreign firms found to be damaging the interests of Chinese companies. Chinese authorities have completed most of the necessary preparations to blacklist FedEx, and unnamed authorities who spoke to Bloomberg said the final decision would be made by senior officials. The Chinese Commerce Ministry couldn’t be reached for immediate comments on the matter.

FedEx, for its part, has already spoken out on the issue. “We hope we satisfied them that this wasn’t any nefarious activity on our part[…] It was just a well-intentioned FedEx teammate that made an error. We’ll just have to wait and see,” FedEx CEO Fred Smith said to Fox News. Regardless of intentions on either side, FedEx has taken a hit in the markets, as shares in the company fell just under 2% on the news Tuesday morning.

The American and Chinese presidents are set to meet again at the G20 summit in Osaka later this week. There are currently no major signs that the trade war between the world’s two largest economies will let up anytime soon.

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