In a manifestation of the ongoing U.S.-China Trade War, a FedEx (NYSE: FDX) Corporation pilot named Todd A. Hohn has been detained in Guangzhou in Southern China, while he was waiting for a commercial flight to fly home to Hong Kong.
Hohn is a former U.S. Air force colonel, and was detained after making deliveries across Asia from the Guangzhou airport.
Hohn was a wing commander in Oklahoma at the Altus Air Force Base until 2017. He was detained for supposedly illegally transporting ammunition through the country. He was carrying nonmetallic pellets that are used for low-power replica guns. They were in a checked bag.
"Chinese authorities in Guangzhou detained and later released one of our pilots on bail after an item was found in his luggage prior to a commercial flight," Federal Express said in a statement. "We are working with the appropriate authorities to gain a better understanding of the facts."
The incident seems to be a tributary of a much larger impact being had upon the delivery company, whose shares fell 12.9% Wednesday, one of the worst days since the 2008 financial crisis. This came after the company cut its earnings estimates for the year and reported disappointing quarterly profits, a possible outcome of the escalating trade war.
Hohn has been released on bail, though he must remain in China until the investigation is complete.
This is not the first time China has cracked down on FedEx. The government began scrutinizing the delivery company in June after Huawei claimed it had purposely diverted packages meant for China towards the United States. Later, Chinese authorities claimed that FedEx was in custody of around 100 packages for Huawei that were being held off due to the ongoing feud between the US government and the Chinese company. FedEx, caught in the political crossfire, eventually sued the US government over export restrictions on Huawei, stating they placed FedEx in a questionable position.
Though China does have strict gun control laws, it is unclear whether carrying airsoft pellets is actually a crime. However, given the current political tensions between Hong Kong and China, it may be the case that security has been tightened due to the potential of violence and political tumult.