FedEx is suing the Trump administration, saying it's "virtually impossible" to comply with its restrictions on trade with Huawei and other blacklisted companies.
FedEx says opening millions of packages every day to check if they contain restricted items isn't feasible.
Adding in the complaint that its choices are to either scrap a big chunk of its business or break the rules and face stiff penalties.
As a result, it argues the export restrictions violate its Fifth Amendment right to due process and trap it "between a rock and a hard place."
The Trump administration added Huawei to its "entity list" in May, barring US companies from doing business with the Chinese tech giant without special export licenses.
It added several more Chinese companies to the blacklist last week.