Chinese authorities have launched an investigation into FedEx after it diverted to the US two Huawei’s packages intended for Huawei offices in China, according to an official statement.

FedEx’s misconduct has “seriously damaging the lawful rights and interests of its clients and violating laws and regulations governing the express industry in China, the statement said.

“We welcome foreign companies’ lawful operations in China. But if they violate Chinese laws, we need to investigate them in accordance with Chinese laws,” said Wang Shouwen, China’s vice minister of commerce and deputy trade negotiator.

FedEx said in a statement it would cooperate fully with any regulatory investigation.

The investigation came amid the backdrop of the escalating US-China trade war in which the US government has raised tariffs on US$250 million in Chinese goods and “blacklisted” Huawei.

The telecom giant said it was re-assessing its relationship with the US parcel delivery service after several packages were diverted.

FedEx apologized later, saying there were no external parties involved and the mis-transportation involved only an isolated number of Huawei shipments. Huawei welcomed FedEx’s apology, but said it was suspicious that the diversion was purposeful.