Huawei executive arrested in Canada for 'violating US sanctions on Iran'

Andrew Cummings
December 7, 2018

The prime minister declined to comment further on the case, citing a court-ordered publication ban sought by Huawei chief financial officer Meng Wanzhou, arrested at the request of U.S. authorities as she was changing planes in Vancouver.

Meng Wanzhou is scheduled to appear in court on Friday for a bail hearing.

The drops came after the arrest of Huawei executive Meng Wanzhou in Canada for extradition to the United States in an investigation into suspected Iran sanctions violations by the telecom giant.

'As there is a publication ban in effect, we can not provide any further detail at this time.

Trudeau denied that there was any political impetus to the decision to detain Meng. Yet its political and economic system - which promotes inefficient state-owned companies at the expense of nimbler private ones - discourages innovation. "The Chinese side firmly opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim", reads a statement released by the embassy.

China, which has spent the week thus far making conciliatory gestures to the U.S.in an attempt to bring the trade war to an end, is furious and is demanding Meng's release.

Canadian Justice Department spokesman Ian McLeod confirmed her arrest on Wednesday, but said he could not provide further details on the case due to a publication ban imposed at Meng's request.


"At the request of the USA side, the Canadian side arrested a Chinese citizen not violating any American or Canadian law". "I imagine that some Chinese are going to see this as the equivalent of a hostage-taking", he said.

Canada is one of the more than 100 countries with which the United States has extradition treaties, obligating it to co-operate with OIA requests.

An editorial in the pro-government Global Times accused the US of "maliciously finding fault" with Huawei.

"No matter what happens in the short term, (the arrest of Huawei's CFO) is a symptom of a long-term technology clash", said Derek Scissors, a China specialist at the conservative American Enterprise Institute.

The commerce ministry said separately it will "immediately implement" measures reached under the trade truce, which includes agricultural products, energy and autos, and was "confident" a deal could be reached in the coming 90 days. "It's like the dog that didn't bark, if a business person decides not to make an investment, or existing company decides not to expand their investment (in Canada)", he said.

The arrest took place on the same day that the U.S. and Chinese presidents, Donald Trump and Xi Jinping, had met for a long-awaited summit in Buenos Aires and spoken of easing an intensifying trade row.

Canadian officials arrested Huawei CFO Meng Wanzhou on Saturday.


That was until her shock arrest in Canada at the request of USA authorities on Wednesday, a move that has entangled her in the protracted diplomatic tensions between Washington and Beijing.

In 2012, the Australian government banned Huawei from bidding for NBN, Australia's broadband access network, for national security reasons.

Speaking at a press conference, Shuang responded to allegations that Meng's arrest had to do with Chinese intelligence services being suspected of involvement in the hacking of the United States hotel group Marriot, saying that he was "not aware" of the situation.

The detention of Meng, who takes her family name from her mother and has also used the English first names "Cathy" and "Sabrina", has once again thrown the spotlight on Huawei at a time of heightened global concerns over electronic security.

Huawei's smaller rival, ZTE (ZTCOF), provides an example of how the U.S. government could go further.

Huawei said it was "not aware of any wrongdoing by Ms Meng". He said targeting Huawei, one of the most successful Chinese companies, "will trigger anti-US sentiment in China".

USA authorities have been probing Huawei, one of the world's largest makers of telecommunications network equipment, since at least 2016 over allegations that it shipped US -derived tech products to Iran and other countries in violation of US export and sanctions laws, sources told Reuters in April.


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