June 2 (UPI) — Beijing authorities have moved to file a case to probe FedEx over allegedly violating Chinese clients’ rights, the state-run news agency Xinhua reported Saturday.
Xinhua reported that authorities are calling for the investigation based on FedEx allegedly “undermining the legitimate rights,” of clients in China.
The U.S. parcel service has failed to deliver express packages to these clients, in violation of “laws and regulations governing the express industry in China,” Xinhua said.
FedEx clients involved and the penalties the company could face have not yet been identified.
Still, last week, Chinese multinational technology company Huawei said FedEx had diverted packages to the United States, which should have gone from Japan to its Chinese offices. FedEx reportedly apologized for the error and said it would cooperate fully with regulatory investigation.