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FedEx Reportedly Misses Delivery Of Huawei Package To U.S.


FedEx Corp. said it missed delivery of a Huawei Technologies package in the U.S. due to an "operational error" and has apologized for the incident, according to reports.

The package delivery giant also reportedly said it will accept and deliver all Huawei products, except for shipments to addresses of Huawei and affiliates listed on the U.S. Entity List.

The latest incident comes as FedEx is being investigated by Chinese authorities for having delivered Huawei packages to the wrong address in May.

China's state-run Global Times newspaper said in a tweet that FedEx is likely to be added to China's own list of so-called "unreliable entities", including foreign companies and individuals, that harm the interests of Chinese companies.

Huawei is said to be reviewing its relationship with FedEx after the company last month diverted two packages sent from Japan and addressed to Huawei in China, to the U.S.

FedEx has also been accused by Huawei of trying to divert two other packages sent from Vietnam to Huawei's offices in Asia, without authorization.

Huawei was effectively barred from doing business with U.S. suppliers after it was placed in May on the Trump administration's Entity List, which contains a list of companies that the U.S. believes are potentially a national threat. This means Huawei cannot buy components and technology from U.S. companies without prior approval from the U.S. government.

The U.S. has serious concerns about the security risks posed by Chinese technology companies, including Huawei and ZTE.

Intelligence agencies are concerned that Huawei and other Chinese companies may be beholden to the Chinese government or the ruling Communist Party, raising the risk of espionage.

The Trump administration's ban on Huawei, based on national security concerns, is primarily aimed at keeping equipment made by the Chinese company out of the next generation of wireless network, 5G.

Huawei, the world's largest telecom-equipment maker, and ZTE are now major players in the 5G market as they manufacture and sell telecom equipment for 5G networks at competitive prices.

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