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Arrested Huawei CFO makes appearance in Canadian court as USA seeks extradition

Arrested Huawei CFO makes appearance in Canadian court as USA seeks extradition

The Chinese telecoms giant has been under the spotlight since Meng Wanzhou, Huawei's chief financial officer and daughter of its founder, was arrested almost a week ago in Canada at Washington's request.

Vancouver: Chinese telecom giant Huawei´s chief financial officer faces USA fraud charges related to sanctions-breaking business dealings with Iran, a Canadian court heard Friday, a week after she was detained on an American extradition request.

Gibb-Carsley alleged that Huawei had done business in Iran through a Hong Kong company called Skycom. This put the banks at risk of breaching sanctions. SkyCom is believed to be an unofficial subsidiary of Huawei, though the companies do not claim to be connected.

None of the allegations have been proven in court.

In a packed Vancouver courtroom, Crown attorneys argued that Meng's family's vast financial resources - and the prospect of up to 30 years in an American prison - provided her with ample incentive to flee if granted bail.

"But one thing that is undoubtedly true and proven is the USA is trying to do whatever it can to contain Huawei's expansion in the world simply because the company is the point man for China's competitive technology companies", it said.

"Do we (in Europe) have to be anxious about Huawei or other Chinese companies?" This is also believed to have helped Huawei "circumvent United States sanctions by telling financial institutions that a Huawei subsidiary was a separate company". That information was passed on to federal prosecutors in the Eastern District of NY, the Journal report said.

If she is released on bail, she would likely have to surrender her passport and submit to electronic monitoring until she is discharged or surrendered for trial to the United States.

Chinese Tech Exec Faces 30 Years in Prison in U.S., Canadian Prosecutor Says

The US and Chinese tech industries depend on each other so much for components that "it is very hard to decouple the two without punishing US companies, without shooting ourselves in the foot", said Adam Segal, cyberspace analyst at the Council on Foreign Relations.

He dismissed speculation that Meng's arrest was a deliberate ploy to gain leverage over China in trade talks and said that Trump did not know the arrest was coming.

Near the end of her hearing, Ms. Meng asked for some tissue paper to dab her eyes as her lead lawyer spoke of the many people who offered up character references in support of his client.

Australia and New Zealand have already said they will not use Huawei for 5G networks.

"I have not spoken directly to Chinese officials but John McCallum, our ambassador to China - our very senior ambassador to China - has spoken with Chinese officials", Freeland said Friday in a teleconference from meetings in Berlin.

"This is one of the U.S.'s many tactics and tools used in its trade war with China to maximize its gains".

Meng, who also goes by the names Cathy and Sabrina, is not only Huawei's CFO but also its deputy chair of the board of directors and its founder's eldest daughter.

Richard Harris, chief executive of Port Shelter Investment Management, suggested that while the arrest will likely blow over and not affect the negotiations between the U.S. and China, "it serves to highlight how toxic the Huawei brand has become in the West".

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