Chinese authorities suspect U.S. package delivery company FedEx Corp violated the law by not making shipments of goods from the tech company Huawei to their recipients, the Xinhua state news agency reported on Friday.
China's investigation of FedEx came after the United States placed Huawei on an "entity list" that effectively bars U.S.-based suppliers from serving the company.
Investigators found that FedEx had held back more than 100 Huawei-related shipments, Xinhua reported.
Initially, FedEx attributed the failed shipments to an "operational error" but authorities found that the explanation did "not meet reality," Xinhua reported.
"In the midst of the investigation, other clues that FedEx violated laws and regulations were discovered," Xinhua reported.
FedEx did not respond to an emailed request for comment.