After China announced that it would establish a “list of unreliable entities”, as a measure against the US ban on Huawei, FedEx became the first object of investigation by relevant departments. The incident reflected the escalation of the China-US trade war and signs that China-US relations are worsening.
FedEx transferred Huawei’s 4 postal parcels to the US event continued fermentation, Xinhua News Agency reported on Saturday (June 1) that FedEx’s actions violated the relevant regulations of China’s express delivery industry, indicating that the relevant departments have decided to open a case investigation. FedEx became the first American company to be named by China since the Sino-US trade war started.
China establishes trade blacklist
The Chinese Ministry of Commerce announced on Saturday (June 1) that it will establish a “list of unreliable entities” to block or confiscate Chinese companies for non-compliance with market rules, deviation from the spirit of the contract, and for non-commercial purposes. The foreign legal person, organization or individual that the Ministry of Commerce claims to pose a threat or potential threat to China’s national security can be included in the list of “unreliable entities.” This list of unreliable entities is actually China’s trade blacklist.
Xinxin believes that this is in response to the recent US ban on Huawei, a high-profile claim that Huawei is at risk of international security, and FedEx is the first respondent to the measure because of the wrong incident.
China’s FedEx headquarters is located in Shanghai. There are 400 operating points in China and there are 9,500 employees. In order to cooperate with the Guangzhou production company base, FedEx has become an important transit point in Asia in Guangzhou.
For the first time, it will be stated that restrictions will be imposed on individual companies.
In the past, the United States was targeting China in trade. China only repudiated through words, or responded to tariffs imposed by the United States with tariffs, and rarely made high-profile restrictions on corporate actions. Mats Harborn, president of the European Union Chamber of Commerce in China, said that this is a warning signal issued by Beijing: “This is the first time I have seen that the Chinese government will actually implement counter-measures against the company.”
In 2017, South Korea was countered by China’s “Korean Limit” because of its report on the Saad missile defense system. However, Chinese officials have so far denied that they have made counter-measures against South Korea. This is the first time that China has explicitly stated that it will impose sanctions on individual companies or groups of individuals.
The analysis believes that this is an escalation of the Sino-US trade war and signs that Sino-US relations are worsening.
It is expected that China and the United States will make progress on trade war negotiations at the G20 summit of the G20 in Osaka, Japan in June. However, due to the escalation of the US ban on Huawei, it is worrying that even if the two countries hold a summit, it will be difficult to break through.