A day after FedEx stock dropped amid fears it could get blacklisted by China, FedEx sued the United States government over the recent Huawei export ban.
"FedEx is a transportation company, not a law enforcement agency," the company said in announcing the lawsuit.
The company has been taking heat from Huawei, which told the Japan Times about FedEx making decisions on some of its shipments:
"Chinese telecom equipment maker Huawei is reviewing its relationship with FedEx Corp after it claimed the U.S. 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."
Is FedEx bowing to Chinese pressure and somehow un-American?
Can we view this lawsuit as FedEx choosing China over the U.S.? Not at all, it says.
On the other hand, the company said it feels like an extension of the U.S. government right now:
"The EAR [Export Administration Regulations] essentially deputize FedEx to police the contents of the millions of packages it ships daily even though doing so is a virtually impossible task, logistically, economically, and in many cases, legally. Indeed, the majority of transactions begin with the customer providing FedEx with a previously sealed package."
FedEx says it "Strongly supports the objectives of U.S. export control laws. We have invested heavily in our internal export control compliance program."
However, in this case, it claims the burden on the company is too great.
This includes a lack of safe harbor for the company should it fail to comply with the latest directives of the U.S. Entity List.
Read the FedEx lawsuit against the United States over the Huawei ban.
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