Huawei stops production of some smartphone models following USA trade sanctions

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Huawei accused FedEx of shipping two packages containing documents destined for Huawei in China to the USA without authorization, Reuters reported.

China announced its list on Friday, saying that it will add any foreign firms and individuals who do not play nice with Chinese companies, namely Huawei.

China is launching an investigation into FedEx Corp. for the wrongful delivery of packages, Xinhua reported. The duties of 5 per cent to 25 per cent are retaliation against President Donald Trump's decision to raise duties on United States dollars 200 billion of Chinese imports to 25 per cent, up from 10 per cent previously. "It also helps to ensure the security of postal communication and the economy".

"Some foreign entities have violated normal market rules and the spirit of their contracts for non-commercial purposes, blockading and cutting off supplies and taking other discriminatory actions against Chinese companies damaging their legitimate rights and interests, and endangering China's national security and national interests", Gao continued.

The US restrictions on doing business with Huawei have hit the company hard, with many multinational companies playing it safe by announcing they will halt cooperation.

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FedEx said in a statement it values its relationships with customers in China, and that it would "fully cooperate with any regulatory investigation into how we serve our customers".

Zhao Ming, president of Huawei's Honor brand, recently suggested that the target is uncertain now, albeit the Chinese tech giant isn't yet ruling out the possibility of still becoming the world's top phone maker.

The spokesperson said China was "safeguarding" global economic and trade norms as well as the multilateral trading system with this move while also opposing "unilateralism and trade protectionism", terms which Beijing has repeatedly used in its rhetoric against the tariff war initiated by US President Donald Trump. Xinhua used two hashtags in Weibo posts on the FedEx probe: #ChinaUSTrade and #RetaliateAgainstUSTradeBullying.

"We think the most important impact would be losing brand trust if Huawei couldn't offer stable shipments due to the USA export ban", Kuo wrote in the note.

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