BEIJING -- China accused FedEx of deliberately "holding up" the delivery of more than 100 Huawei packages after the US firm misrouted some parcels from the telecom giant, state media said Friday.
The ongoing tussle between the two firms comes as Beijing and Washington face off in a trade war in which both sides have exchanged steep tariffs on hundreds of billions of exports.
FedEx apologized in May for "misrouting" what it said was a "small number" of Huawei packages.
Huawei said at the time it would review its ties with the package service over the incident.
But a Chinese government probe, launched last month, accused FedEx of "holding up" more than 100 packages from Huawei, according to the official Chinese state news agency Xinhua.
"During the investigation, other leads of FedEx violating regulations were also discovered," it said.
In June, another Huawei package meant for the United States went undelivered by FedEx -- an incident FedEx called an "operational error".
But Chinese investigators said this explanation "does not agree with the facts", Xinhua reported.
Huawei is facing moves from Washington to blacklist the Chinese tech firm, cutting it off from American-made components it needs for products -- though it was issued a 90-day reprieve in May.
China has hit back by announcing it would create its own blacklist of "unreliable" companies and individuals, which could target US and international firms that have cut off supplies to Huawei.
US and Chinese officials will resume trade talks next week in Shanghai -- the first face-to-face discussions since negotiations collapsed in May after Washington accused Beijing of reneging on its commitments.
source: news.abs-cbn.com
NEW YORK -- FedEx warned Tuesday that its fiscal 2020 earnings outlook remains clouded by trade war uncertainty as the company's chief executive criticized the Trump administration's lurch towards protectionism.
Overall the company is projecting 2020 diluted earnings-per-share to be down by a "mid-single-digit" percentage point compared with the 2019 level.
FedEx expects higher operating income in fiscal 2020 from its domestic package and freight shipping services as growing e-commerce activity fuels higher revenues.
But operating income is expected to be dented at FedEx Express, its international shipping division, in part because of trade uncertainty.
"We've been very disappointed over the last few years with the assumptions that we made on the growth of international trade, particularly with the Trump administration," Chief Executive Fred Smith said on a conference call with financial analysts.
"The United States policy since 1934... was to expand international trade and now we have a huge dispute with China where the US has basically become protectionist, defined as 'I'll make everything I need in my own borders.'"
Smith, long an outspoken advocate of free trade, also took issue with China's policy on trade, which he described as "mercantilist."
US President Donald Trump and Chinese leader Xi Jinping are expected to meet at the G20 gathering in Japan later this week, an occasion that investors are hoping will bring the two countries closer to agreement after months of tariffs, countermeasures and threats.
Smith said the company remained committed to operating in China and "completely dedicated" to complying with Chinese laws.
He said the company has experienced more audits "to some degree" at its Guangzhou hub in the wake of the US-China dispute.
FedEx again apologized over delivery problems involving Chinese telecommunications giant Huawei following a US crackdown on the company that Trump has linked to the US-China trade war.
Smith said the company's newly-filed lawsuit against the Commerce Department over export restrictions was not directly related to the Huawei case but was due to a broader set of government actions that are "opaque" and put too much onus on delivery companies.
On Monday, FedEx sued the US Commerce Department over export restrictions it said impose an "impossible burden" on delivery firms and asked a US District Court to block enforcement of the measures.
FedEx says the US rules makes shippers liable for packages that could violate the restrictions, even if the shipper has no prior knowledge of the problem.
FedEx reported a net loss of $2 billion for the quarter ending May 31, compared with $1.1 billion in profits in the year-ago period.
The company cited lower international revenues and $316 million in costs associated with a voluntary employee buyouts as factors in the loss.
Revenues rose three percent overall to $17.8 billion.
Shares rose 0.7 percent to $157.05 in after-hours trading.
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FedEx Corp has apologized for another Huawei delivery "mistake," reigniting Chinese ire and drawing the fire of state media which suggested the US delivery firm could end up on China's upcoming list of companies that harm national interests.
The firm on Sunday said it returned a package - identified as containing a Huawei phone - due to an "operational error," and that it would deliver all products made by Huawei Technologies Co Ltd to addresses other than those of Huawei and affiliates placed on a US national security blacklist.
FedEx on Monday said it has filed a lawsuit in US District Court seeking to stop the Department of Commerce from enforcing new export prohibitions contained against the package delivery company.
"This puts an impossible burden on a common carrier such as FedEx to know the origin and technological make-up of contents of all the shipments it handles and whether they comply" with restrictions, the company said in a statement.
China's foreign ministry on Monday nevertheless asked for a full explanation. Technology news outlet PCMag, formerly known as PC Magazine, reported that its writer in Britain had attempted to send a Huawei P30 handset to a colleague in the United States.
FedEx returned the phone and told the sender that it could not deliver the package because of a "US government issue" with Huawei and the Chinese government, PCMag reported.
The incident comes as Chinese authorities investigate FedEx for misrouting packages sent by Huawei last month. Meanwhile, China is also drawing up an Unreliable Entities List of foreign firms, groups and individuals.
The list mirrors the US Entity List that Huawei was added to in May, essentially barring it from buying US technology upon which it was heavily reliant. The US added more Chinese entities to the list on Friday.
The Beijing News, a municipal government-run newspaper, in an editorial on Monday, said FedEx had misinterpreted the US ban and called on US firms to be "rational" and not to over-react.
FedEx rival United Parcel Service Inc also confirmed it would not ship to Huawei addresses on the Entity List but had no "general ban" on Huawei products.
A Huawei spokesman said the Chinese firm was not currently using either FedEx or UPS services. On Sunday, Huawei tweeted it was not within FedEx's right to prevent the delivery and said the courier had a "vendetta."
UNRELIABLE
The latest incident sparked renewed criticism of FedEx on Chinese social media, with the topic "FedEx apologizes again" trending on Weibo, China's Twitter-like microblog platform.
State-run newspaper Global Times on Sunday tweeted that FedEx is likely to be added to China's Unreliable Entities List.
Neither China's commerce ministry nor FedEx responded to Reuters' requests for comment on the likelihood of FedEx being added to the list. State news agency Xinhua previously said authorities' investigation into FedEx misrouting Huawei packages should not be regarded as retaliation.
Being in the "crosshairs" of the Chinese government "is a tremendous headwind and risk" for FedEx, Trip Miller, said managing partner at Memphis-based Gullane Capital Partners, which holds a FedEx position valued at roughly $7 million.
"Can you imagine if FedEx was banned from doing business? China could get our attention pretty quick if it did something like that," said Miller, adding that such a move would significantly disrupt global trade networks.
FedEx's operational error comes against a backdrop of increasing tension between the world's two biggest economies. The United States and China have been engaged in a trade fight for nearly a year on issues such as tariffs, subsidies, technology, regulations and cyber security.
A telephone call between US President Donald Trump and Chinese President Xi JinPing last week, as well as confirmation the two will meet in Japan on the sidelines of a Group of 20 summit, have rekindled hopes of a detente.
source: news.abs-cbn.com
HONG KONG - Chinese telecoms equipment maker Huawei is reviewing its relationship with FedEx Corp after it claimed the US package delivery company, without detailed explanation, diverted two parcels destined for Huawei addresses in Asia to the United States and attempted to reroute two others.
Huawei told Reuters on Friday that FedEx diverted two packages sent from Japan and addressed to Huawei in China to the United States, and attempted to divert two more packages sent from Vietnam to Huawei offices elsewhere in Asia, all without authorisation, providing images of FedEx tracking records.
Reuters could not verify the authenticity of the records. Shown the images of the tracking records, FedEx declined to make any comment, saying company policy prevented it from disclosing customer information.
Huawei said the four packages only contained documents and "no technology," which Reuters was unable to independently confirm.
Huawei declined to elaborate on why it thought the packages were diverted. Reuters was given no evidence the incident was related to the U.S. government's move to place Huawei and its affiliates on a trade blacklist in mid-May, effectively banning US firms from doing business with them on security grounds.
"The recent experiences where important commercial documents sent via FedEx were not delivered to their destination, and instead were either diverted to, or were requested to be diverted to, FedEx in the United States, undermines our confidence," Joe Kelly, a spokesman for Huawei, told Reuters.
"We will now have to review our logistics and document delivery support requirements as a direct result of these incidents," the spokesman said.
Huawei acknowledged to Reuters that one package originating in Vietnam was received by Friday, and the other was on its way, according to FedEx tracking records provided by Huawei.
FedEx spokeswoman Maury Donahue told Reuters the packages were "misrouted in error" and that FedEx was not requested to divert them by any other party.
"This is an isolated issue limited to a very small number of packages," said FedEx, referring to the four parcels affected. "We are aware of all shipments at issue and are working directly with our customers to return the packages to their possession."
The US Department of Commerce did not reply to a request for comment on whether the incident might be related to its move on May 16 to add Huawei to the so-called "Entity List," preventing it buying certain items from US companies without US government approval.
FORMAL COMPLAINT
The United States believes Huawei, the world's largest telecom network gear maker leading the way in creating the next generation of wireless networks known as 5G, is a potential espionage threat because of its close ties with the Chinese government.
Huawei has repeatedly denied it is controlled by the Chinese government, military or intelligence services.
The issue has become a flashpoint in an escalating trade battle between the world's two biggest economies.
The two packages sent on May 19 and May 20 from Tokyo, intended for Huawei in China, ended up in Memphis, Tennessee, the headquarters of the US company, by May 23, according to images of FedEx tracking records shown to Reuters by Huawei.
The two packages originating from Hanoi on May 17, destined for Huawei's Hong Kong and Singapore offices, were held up after arriving in local FedEx stations in Hong Kong and Singapore on May 21 for "delivery exception," according to other images Huawei showed Reuters.
According to FedEx's website, the status "exception" means an unexpected event is preventing delivery of a package, for example a customs delay, a holiday, or no one being available to accept delivery. FedEx declined to give details on what the exception was in this case.
According to Huawei, a FedEx customer service representative in Vietnam replied to their inquiry on May 22 when two expected packages did not arrive on time, saying: "Please be informed that FDX SG received notification from FDX US to hold and return the package to US. Hence, the shipment is not deliver to consignee and now being hold at FDX station and under process to RTS it (return to sender)," the representative wrote in broken English, according to an email Huawei showed to Reuters.
Huawei told Reuters that both Vietnam packages were sent by its shipping agent, a contractor to Huawei whom it did not identify, and contained urgent documents. It said the shipping agent refused permission for FedEx to send the packages to the United States and instructed they be returned, Huawei told Reuters. Reuters could not confirm that.
Huawei told Reuters it only learned that the Japan-originated packages, which were sent by suppliers that it did not identify, had been diverted to the United States after checking FedEx's tracking record.
The company said it has lodged a formal complaint with China's postal regulator, which it said is investigating the incident. China's State Postal Bureau did not return a request for comment.
source: news.abs-cbn.com
SAN FRANCISCO -- Global courier service FedEx on Wednesday announced plans to test a "SameDay Bot" autonomous delivery device designed to carry purchases from retail shops to local customers.
FedEx said its robotic delivery carts, reminiscent of a large canister with wheels, would be tried out in its home city of Memphis, Tennessee later this year, provided it gets final approval from officials there.
"The bot represents a milestone in our ongoing mission to solve the complexities and expense of same-day, last-mile delivery for the growing e-commerce market in a manner that is safe and environmentally friendly," FedEx executive vice president Brie Carere said in a statement.
FedEx enlisted DEKA Development & Research to help develop the delivery bot, which is designed to travel along sidewalks or roadsides carrying small shipments to homes or businesses.
"The bot has unique capabilities that make it unlike other autonomous vehicles," said DEKA founder Dean Kamen, an engineer whose creations include the Segway.
Battery-powered FedEx bots have sensors to avoid pedestrians and other potential obstacles, and can even climb steps or curbs, according to the companies. The bot's top speed was reported to be 10 miles per hour (16 kilometers per hour).
The initial test will involve deliveries between selected FedEx offices.
FedEx said that it was exploring the potential of using the bots to meet short-range delivery needs of retailers including Walmart, Target and Pizza Hut.
It is common for people to live within three miles of retail shops where they are customers, creating an opportunity to serve them with "hyper-local," on-demand deliveries, according to FedEx.
An array of startups have been working on efficient, autonomous robots to carry purchases that "last mile" from restaurants, shops, or warehouses.
E-commerce giant Amazon in January began putting cooler-sized robots to work delivering packages to customers in a neighborhood outside Seattle.
Electric-powered, wheeled delivery vehicles named "Scout" were created by Amazon and guide themselves along sidewalks at a walking pace, according to Sean Scott, the vice president heading the project.
Results of the Scout experiment will determine whether the system is expanded.
Amazon has developed an extensive logistics network as it works to efficiently delivery goods to customers while controlling costs.
Chinese retail giant JD.com uses delivery robots, as do a number of startups operating in the United States and Europe.
Starship Technologies, based in Estonia, has tested operation in the US capital city of Washington, and another startup, KiwiBot, handles deliveries to US university students.
source: news.abs-cbn.com
A huge range of organizations around the world have been affected by the WannaCry ransomware cyberattack, described by the EU's law enforcement agency as "unprecedented."
Here are some of the most prominent victims, from Britain's National Health Service (NHS) to French carmaker Renault and the Russian interior ministry.
NHS
The British public health service - the world's fifth-largest employer, with 1.7 million staff -- was badly hit, with interior minister Amber Rudd saying around 45 facilities were affected. Several were forced to cancel or delay treatment for patients.
Pictures on social media showed screens of NHS computers with images demanding payment of $300 (230 pounds, 275 euros) in the virtual currency Bitcoin, saying: "Ooops, your files have been encrypted!"
Renault
The French automobile giant was hit, forcing it to halt production at sites in France and its factory in Slovenia as part of measures to stop the spread of the virus.
Nissan UK's unit in Sunderland was hit by the attack, spokeswoman Lucy Banwell said.
Russian banks and ministries
Russia's central bank was targeted, along with several government ministries and the railway system. The interior ministry said 1,000 of its computers were hit by a virus. Officials played down the incident, saying the attacks had been contained.
Germany railways
Germany's Deutsche Bahn national railway operator was affected, with information screens and ticket machines hit. Travellers tweeted pictures of hijacked departure boards showing the ransom demand instead of train times. But the company insisted that trains were running as normal.
Fedex
The US package delivery group acknowledged it had been hit by malware and said it was "implementing remediation steps as quickly as possible."
Telefonica
The Spanish telephone giant said it was attacked but "the infected equipment is under control and being reinstalled," said Chema Alonso, the head of the company's cyber security unit and a former hacker.
source: news.abs-cbn.com
