China Post and Huawei form comprehensive strategic partnership after FedEx episode

This show of unity comes just days after the Chinese postal regulator said it’s investigating FedEx for diverting parcels addressed to Huawei to the United States.

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China’s state-owned logistics giant China Post says it’s forming a new “comprehensive strategic partnership” with Chinese telecoms giant Huawei.

In a WeChat post, China Post said the two parties have signed a cooperation agreement which will see them deepening cooperation in finance, technology innovation, logistics, and talent cultivation.

Senior executives from both companies, including China Post chairman Liu Aili and Huawei co-chairman Eric Xu, attended the agreement signing ceremony today, according to the post.

The two companies will set up a new technology application lab and a joint innovation center.

The timing of this show of unity between Huawei and China Post gives it special significance. It comes just days after China’s postal regulator said it will launch an investigation into US delivery company FedEx.

FedEx diverted two parcels destined for Huawei in China to the United States after the US government heightened scrutiny of the Chinese telecoms giant and put it on its “Entity list”. FedEx has since apologized for its “error in transportation” but denied any outside involvement in the mishandling.

Huawei, however, said it would review its partnership with FedEx after the episode. “We will now have to review our logistics and document delivery support requirements as a direct result of these incidents,” Huawei spokesman Joe Kelly said, according to Reuters.