The US’s action of placing Huawei on an entities list preventing US businesses from doing business has had wider consequences than originally known. In the case of FedEx, the firm has already come under fire for two Huawei package incidents. Both of which involving Huawei parcels being redirected in or around the United States.
Now FedEx is suing the United States Department of Commerce, arguing that the nature of this ban is so broad that it is onerous on them to enforce it lawfully. The firm argues that to adhere to the ban would be “virtually impossible task, logistically, economically, and in many cases, legally.” While the firm did not mention Huawei specifically by name, instead arguing against prohibitions in the Export Administrations Regulations, it remains the elephant in the room.
The firm has requested the U.S District Court in the District of Columbia to prevent the Department of Commerce from enforcing those prohibitions, noting that it “places an unreasonable burden on FedEx to police the millions of shipments that transit our network every day.”
FedEx is not the only firm to come out against the Huawei ban, many US suppliers will see their profits fall as a result. Google has also argued that a Huawei made operating system could lead to hitherto unknown security flaws.
Last month, the firm fell under investigation in China after Huawei parcels were accidentally redirected to the US.