China has begun an investigation into allegations that FedEx Corp. (NYSE:FDX) illegally handled a package containing restricted shipments of knives bound for Hong Kong, China’s state-run media agency Xinhua said September 3.
The items were allegedly headed for China’s Hong Kong Special Administrative Region, Xinhua said. The items involved have been temporarily detained as the investigation is underway, Xinhua said.
In a statement, FedEx said that “the shipment in question was handled correctly via standard security protocol. The package was from a regular shipper and was handed over to appropriate authorities by FedEx, consistent with our regular process and procedures. The package never left its origin city, was never delivered, and remains with the authorities.”
In June, FedEx rerouted packages sent by Chinese telecom maker Huawei Technologies bound for Huawei’s offices in Asia to its worldwide headquarters in Memphis, Tennessee. FedEx subsequently apologized for the incidents.