FedEx Could Face Consequences in Trade War with China
China is considering the possibility of blacklisting FedEx due to errors made during a delivery involving Huawei, a Chinese tech company.
The decision to blacklist FedEx would be a significant escalation in the trade war, pending approval from senior officials in China.
In response to the potential blacklist, FedEx has expressed regret over the delivery mishap and emphasized that it was not deliberate sabotage. FedEx CEO Fred Smith stated that the error was made by a well-meaning employee and hopes for a favorable resolution.
The Chinese government introduced an “unreliable entities” list in May to target foreign companies that harm Chinese interests. Although the final decision on blacklisting FedEx awaits high-level approval, preparations have been advanced by Chinese authorities.
While both countries are gearing up for the upcoming G20 summit in Osaka, tensions between the US and China persist, indicating that the trade war is far from over. FedEx’s shares experienced a dip of nearly 2% following news of the potential blacklist.
