U.S. ‘suspects Huawei used global banking plot to evade Iran sanctions’

Man walks by a Huawei logo at a shopping mall in Shanghai

A man walks by a Huawei logo at a shopping mall in Shanghai China

Huawei Technologies' chief financial officer Meng Wanzhou was arrested Saturday in Canada and faces extradition to the U.S. Meng was taken into custody on behalf of the U.S. while she was transferring flights in Vancouver, the tech company said.

A Chinese foreign ministry spokesperson has demanded the USA and Canada justify the arrest, and referred to Wanzhou's detention as a human rights violation, a charge often leveled at Beijing.

He also said the USA government has been "concerned" about Huawei potentially stealing American intellectual property - an issue that's been a centerpiece of the U.S-China trade disputes.

China's embassy in Canada has said it "opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim", which will raise more than a few eyebrows, given China's horrendous track record with human rights. He declined to give further details, given that Meng faces a bail hearing on Friday.

An executive from the Chinese electronics giant Huawei Technologies faces extradition to the US after getting arrested in Canada, further complicating U.S.

The Wall Street Journal reported in April that American authorities are investigating whether the Chinese tech company violated sanctions on Iran. "She would be the Ivanka Trump of Huawei", said Abramson, adding that Huawei is like the "Apple of China" and Meng is an extremely important business person.

Evans argued the arrest is just one small part of a broader, longer-term geopolitical story playing out between the USA and China, and it is concerning for Canada to be caught in the middle.

Sen. Mark Warner, who wrote a letter alongside Rubio to Canadian Prime Minister Trudeau in October asking him to reconsider including Huawei in its country's 5G network, urged the Trump administration to hold the Chinese telecommunications giant "accountable".

Nevertheless, Huawei is allowed to operate in Canada and in a September interview with the Globe and Mail, Scott Jones, head of Canadian Centre for Cyber Security, said Ottawa is confident sufficient safeguards exist to deal with the risks of telecommunications hacking or spying by China.

"So not respecting this particular arrest, but Huawei is one company we've been concerned about", he added.

However a 90-day truce on the tit-for-tat trade war between the two superpowers promised to provide markets with some short term stability.

Earlier this year the Australian Government banned Huawei from taking part in the rollout of 5G mobile infrastructure over national security concerns.

"Recently, our corporate CFO, Ms. Meng Wanzhou, was provisionally detained by the Canadian Authorities on behalf of the United States of America, which seeks the extradition of Ms. Meng Wanzhou to face unspecified charges in the Eastern District of NY, when she was transferring flights in Canada", the statement reads.

According to United States officials, however, the arrest of Meng had been planned for some time, and was something of an open secret in the Trump administration.

Further speaking on the issue, Huawei spokesperson said, "The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng".

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

MSCI's benchmark for global stocks declined 0.61 percent, and US markets were on track to open lower by 1 percent or more.

Trump has threatened to raise tariffs on Chinese goods in response to complaints that Beijing improperly pressures foreign companies to hand over technology. -Chinese tensions that threaten global economic growth.

"The Chinese will absolutely interpret it as being directly connected", said Dean Cheng, a Heritage Foundation senior research fellow on Chinese political and security affairs.

Image: Meng Wanzhou is a long-serving executive at Huawei. "U.S. President Donald Trump should rein in the hostile activities of some Americans who may imperil Sino-U.S. relations".

No one answered the door when Postmedia News visited the Dunbar home Thursday afternoon, but neighbourhood residents said they recognized Meng from media reports, though they did not want to talk on the record.

Officials discovered ZTE was selling its products with US technology to Iran and North Korea. Huawei is the world's largest supplier of telecommunications network equipment and second-biggest maker of smartphones, with revenue of about $92 billion previous year.

Mulroney said Canada should be prepared for "sustained fury" from the Chinese and said it will be portrayed in China as Canada kowtowing to Trump.

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