China files probe against FedEx to protect users’ rights

China Plus Published: 2019-06-02 00:02:04
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Note: The following article is taken from the Chinese-language "Commentaries on International Affairs".

China has filed an investigation into FedEx Corp for the wrongful delivery of packages. The June 1 official announcement states such cases seriously damage the legal rights and interests of the clients of the package delivery company and violate Chinese laws and regulations.

[Photo: IC]

[Photo: IC]

This news was widely expected. On May 24, FedEx transferred two packages, from Huawei’s Japanese offices destined for China, to the United States. It also attempted to reroute two other packages from Vietnam destined for Huawei addresses in Asia to the United States. Although FedEx apologized afterwards, the company maintains the packages had been "inadvertently misrouted" and that the move was “not requested by any external party.”

However, since Huawei has now been added to the U.S. Entity List making it subject to export controls, can such mistakes truly be seen as coincidental?

Especially since U.S whistleblower Edward Snowden is on record as revealing the U.S. government does indeed have the ability to "intercept logistics."

Whether the "misrouting" of FedEx items is a mistake at the operational level, or whether it is an example of cooperation with the "long-arm jurisdiction" of the US government, must be explained to the outside world.

According to the laws and regulations governing China's courier service industry, package delivery companies are required to protect senders’ freedom of communication. They state that such companies shall not deliver, hide or open packages without permission, and under no circumstances should deliver the packages of clients to others. The Chinese departments involved have had serious talks with FedEx and have now legally filed an investigation.

As a courier company that has been operating in China for decades, FedEx has an obligation to cooperate with the Chinese authorities, which have the right to punish the company depending on the investigation results. The legitimate rights and interests of all Chinese enterprises and personnel in express delivery services shall be protected in accordance with the law.

China has introduced a system of establishment of an "entity list" of companies regarded as untrustworthy and will take any lawfully necessary legal and administrative measures against the entities listed. The FedEx investigation will set an example to other overseas companies, organizations and individuals who do not comply with Chinese laws and regulations.

China has a huge market offering huge potential profits. Foreign-funded enterprises are always warmly welcome to come forward, but only if they abide by China's laws and regulations, follow market rules and the spirit of contract. No companies will be allowed to block or cut off supplies to Chinese enterprises for non-commercial reasons. The legitimate rights and interests of Chinese consumers may not be harmed. Only in this way can foreign-funded enterprises enjoy the considerable opportunities for development in China.

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LU Xiankun Professor LU Xiankun is Managing Director of LEDECO Geneva and Associate Partner of IDEAS Centre Geneva. He is Emeritus Professor of China Institute for WTO Studies of the University of International Business and Economics (UIBE) and Wuhan University (WHU) of China and visiting professor or senior research fellow of some other universities and think tanks in China and Europe. He also sits in management of some international business associations and companies, including as Senior Vice President of Shenzhen UEB Technology LTD., a leading e-commerce company of China. Previously, Mr. LU was senior official of Chinese Ministry of Commerce and senior diplomat posted in Europe, including in Geneva as Counsellor and Head of Division of the Permanent Mission of China to the WTO and in Brussels as Commercial Secretary of the Permanent Mission of China to the EU. Benjamin Cavender Benjamin Cavender is a Shanghai based consultant with more than 11 years of experience helping companies understand consumer behavior and develop go to market strategies for China. He is a frequent speaker on economic and consumer trends in China and is often featured on CNBC, Bloomberg, and Channel News Asia. Sara Hsu Sara Hsu is an associate professor from the State University of New York at New Paltz. She is a regular commentator on Chinese economy. Xu Qinduo Xu Qinduo is CRI's former chief correspondent to Washington DC, the United States. He works as the producer, host and commentator for TODAY, a flagship talk show on current affairs. Mr. Xu contributes regularly to English-language newspapers including Shenzhen Daily and Global Times as well as Chinese-language radio and TV services. Lin Shaowen A radio person, Mr. Lin Shaowen is strongly interested in international relations and Chinese politics. As China is quite often misunderstood in the rest of the world, he feels the need to better present the true picture of the country, the policies and meanings. So he talks a lot and is often seen debating. Then friends find a critical Lin Shaowen criticizing and criticized. George N. Tzogopoulos Dr George N. Tzogopoulos is an expert in media and politics/international relations as well as Chinese affairs. He is Senior Research Fellow at the Centre International de Européenne (CIFE) and Visiting Lecturer at the European Institute affiliated with it and is teaching international relations at the Department of Law of the Democritus University of Thrace. George is the author of two books: US Foreign Policy in the European Media: Framing the Rise and Fall of Neoconservatism (IB TAURIS) and The Greek Crisis in the Media: Stereotyping in the International Press (Ashgate) as well as the founder of chinaandgreece.com, an institutional partner of CRI Greek. David Morris David Morris is the Pacific Islands Trade and Investment Commissioner in China, a former Australian diplomat and senior political adviser. Harvey Dzodin After a distinguished career in the US government and American media Dr. Harvey Dzodin is now a Beijing-based freelance columnist for several media outlets. While living in Beijing, he has published over 200 columns with an emphasis on arts, culture and the Belt & Road initiative. He is also a sought-after speaker and advisor in China and abroad. He currently serves as Nonresident Research Fellow of the think tank Center for China and Globalization and Senior Advisor of Tsinghua University National Image Research Center specializing in city branding. Dr. Dzodin was a political appointee of President Jimmy Carter and served as lawyer to a presidential commission. Upon the nomination of the White House and the US State Department he served at the United Nations Office in Vienna, Austria. He was Director and Vice President of the ABC Television in New York for more than two decades.