Economy

5 things about China's Huawei after executive's arrest

5 things about China's Huawei after executive's arrest

Canada's arrest of the chief financial officer of Huawei, at the request of the United States, has rattled Asian markets and enraged Beijing, which is in the midst of negotiations meant to deescalate a trade war with Washington.

Speaking to The Globe and Mail, Canada's Justice Department stated, "Wanzhou Meng was arrested in Vancouver on December 1".

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

Huawei said in a statement that Meng was arrested while changing planes in Canada and that she faced unspecified charges from the Eastern District of NY.

The company said it wasn't aware of any wrongdoing by the CFO and that authorities in both countries will "ultimately reach a just conclusion". He said targeting Huawei, one of the most successful Chinese companies, "will trigger anti-US sentiment in China".

China's embassy said late on Wednesday that it firmly opposed what it called an unjustified arrest.

The Wall Street Journal reported earlier this year that USA authorities are investigating whether Chinese tech giant Huawei violated sanctions on Iran. ZTE was almost driven out of business this year when Washington barred it from buying US technology over exports to North Korea and Iran. "Huawei complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, US and European Union".

Meng is a prominent member of Chinese society as deputy chairwoman of the Huawei board and the daughter of company founder Ren Zhengfei.

The timing of the arrest could not have come at a worse time for Huawei.

Bill Bishop, who writes the respected newsletter Sinocism, said in a note that "if I were a United States tech executive I would delay travel to China for a bit or go on vacation if based there".

-China tensions at a time when the two sides vowed to work to ease their trade war.

No other details have been given, but The Globe and Mail reported that she was detained for attempting to evade USA sanctions on Iran, citing a Canadian source with knowledge of the matter.

Still hoping to host Kim soon
He said he hopes to take a two-track approach with Tokyo on North Korea, . something he says Japanese government will agree on. Their two previous summits were held at the countries' shared border village of Panmunjom.

Meanwhile, the substantially more independent South China Morning Post reported today that Meng and her father recently told Huawei employees that strict compliance with regulations was sometimes not financially feasible and could be avoided.

David Mulroney, a former Canadian ambassador to China, said USA and Canadian business executives could face reprisals in China.

Hong Kong-listed ZTE, which was subject to a United States banning order earlier his year over security fears before that was reduced to a massive fine, was nearly five percent down.

American law enforcement are seeking Meng's extradition to the U.S., and a bail hearing is set for Saturday Australian time.

The arrest took place on the same day Trump met with Chinese President Xi Jinping to discuss the trade war after the close of the G-20 summit in Argentina.

Her detention was made at the request of USA authorities.

Ren responded: "We must not bind ourselves up just because the U.S.is attacking us".

Under former President Barack Obama, the USA government pressured allies to limit their use of Huawei technology due to security concerns.

Huawei is playing a straight bat over Meng's arrest. The Pentagon stopped offering Huawei's devices on USA military bases citing security concerns.

U.S. Senator Ben Sasse praised the action and said that it was "for breaking U.S. sanctions against Iran".

Meng, who was collared by Canadian authorities at Vancouver airport, is now facing extradition to the U.S., where she will, it is believed, face allegations she broke sanctions on selling equipment to Iran.


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